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MakcuM [25]
2 years ago
13

In a mixed-market economy, the government plays a role and can affect the circular flow of income. Governments participate in th

e economy by receiving revenue from households in the form of taxes, and by spending the money they gain from taxpaying citizens. Government expenditures can include spending money on defense, building bridges and other forms of infrastructure, and paying for programs that provide services such as education and health care. All of these types of spending inject money into an economy. However, raising taxes on workers is an example of a withdrawal that could reduce the flow of income. –“The Circular Flow of Income” How might a government deficit affect the circular flow of income? Taxes could be increased to fix the deficit, giving consumers more money to spend. Taxes could be decreased to fix the deficit, giving consumers less money to spend. Government spending could rise due to the deficit, and the economy could grow. Government spending could drop due to the deficit, and the economy could slow down.
Business
1 answer:
a_sh-v [17]2 years ago
3 0

A government deficit can affect the circular flow of income because the government spending could drop due to the deficit and the economy could slow down.

<h3>What is a government spending?</h3>

It refers to the total money spent by the public sector on the acquisition of goods and provision of services such as education, healthcare, social protection, defense etc.

A government budget deficit arises from an excessive government spending and low levels of taxation that don't cover expenditure.

Hence, the government deficit can affect the circular flow of income because the government spending could drop due to the deficit and the economy could slow down.

Therefore. the Option C is correct.

Read more about government spending

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hichkok12 [17]
Cost is fixed price . services taxes true
3 0
3 years ago
The manager of the Beach Division of Treat Time is evaluating the acquisition of a new mobile ice cream server. The budgeted ope
Savatey [412]

Answer:

ROI = 10.5%

Explanation:

The  ROI of a Division is the portion of then operating assets that is earned by  as operating income  by it. The higher the better.

Net operating assets = 28,600,000 - 600,000 = 28,000,000

ROI = Income/ Net operating assets × 100

ROI = 2,940,000/28,000,000  × 100

      = 10.5%

5 0
4 years ago
________ is the process of planning, organizing, directing, and controlling an organization's financial, physical, human, and in
Pie

<u>Answer:</u> C. Management

<u>Explanation:</u>

In order to achieve the goals and objectives of the organization the management has to follow the process of planning, directing, and controlling an organization's financial, physical, human, and information resources. Planning is the way of organizing things to achieve desired goals. Guidance and motivation of the employees is essential for meeting goals

Monitoring and evaluating the tasks is necessary action by the management to control the activities of the firm and direct them in the right path.

6 0
3 years ago
Which of the following statements about the price elasticity of demand is correct The absolute value of the elasticity of demand
notsponge [240]

Answer:

Demand is more elastic in the long run than it is in the short run

Explanation:

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Demand is more elastic in the long run than it is in the short run because in the long run consumers have more time to search for suitable substitutes.

When the absolute value of elasticity of demand is less than one, demand is inelastic.

When the absolute value of elasticity of demand is equal to one, demand is unitary.

When the absolute value of elasticity of demand is greater than one, demand is elastic.

Demand is less elastic the smaller the percentage of the consumer's budget the item takes up. 

The elasticity of demand for a specific brand of good doesn't translate into the elasticity of demand for the good.

I hope my answer helps you

4 0
3 years ago
V8 juice has for years advertised itself as a refreshing and nutritional drink that contains eight different vegetables, and tha
Oliga [24]

Answer: Product line extension

Explanation:

Here, in this particular case the introduction of V8 mango and orange juice by the V8 corporation is the example of product line extension strategy. This strategy is used by the V8 organization in order to introduce the new item in  similar product line.  Here , the line extensions has taken place as the organization tends to introduces new items in similar product category.

7 0
3 years ago
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