10 Questions
Where does the government purchase goods and services from using a given amount of expenditure?
Product market
How does the government acquire the resources needed for providing public services?
By making payments in the factor market
What is the main source of revenue for the government?
Tax collected from households and firms
How does the government support the economy according to the text?
By providing income support to households and subsidies to business firms
What action might the government take to provide additional support to households and firms?
Providing subsidies
Who are the resource owners that the government makes payments to in order to acquire resources?
Households
From which market does the government obtain resources by making payments?
Factor market
Which source provides the government with funds for expenditures, payments, and additional supports?
Tax collected from households and firms
How does the government finance its various activities like expenditures, payments, and support according to the text?
Through tax revenue collection
What is a crucial way in which the government interacts with households and business firms in providing services?
Through subsidies and income support
Test your knowledge on opportunity cost when producing one more unit of a computer and understand the concept of economic growth and its representation on the production possibilities frontier (PPF). This quiz covers topics such as resource quantity and quality, technological advances, and the impact on the PPF.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
