Answered

In the circular flow of the US economy, what does government provide to households? 

AServices and payments   B. Taxes and resources   C. Resources and payments   D. Services and income

Verified Answer :

fernadiaz82

Answer:

The correct answer is the option A: Services and payments.

Explanation:

The Circular Flow of Income is a graphic model of the economy in which the most important exchanges are represented by money, goods and services between economic agents. Those agents commonly are the househols, the firms, the government, the financial market and the oversas sector, that is in a five sector model.

In addition, there are five different types of models for the circular flow of income. In a three type model, one in which the sectors are the households, the firms and the government, the flows from households and firms to government are in the form of taxes, then the income that the government receives from the other sectors flows back to them in the form of purchases, subsidies and transfers of goods and services.

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