All categories

3 years ago

Explain the roles of taxation and government expenditure in the circular flow of income

1 answer:

6 0

The role of taxation in the circular flow of income, is basically to have a medium of revenue for the government, if the government is able to earn money, they are able to spend it on the economy.
So then the role of Government expenditure is to make sure the money goes back into the economy, if the government were to save the money, the economy will have restriction to grow, if all the money the government creates from tax was put back into the economy by spending in say, Heath, Education, Investment, the economy can grow because then household will spend money from their income to utilise these industries.
Hopefully this helps!

You might be interested in

The "market clearing price" is most closely associated with

mel-nik [20]

The market clearing price is the price that balances the amount buyers want to buy with the amount sellers want to sell. This price balances the amounts demanded and supplied. The "market clearing price" is most closely associated with market equilibrium, because it exists when a market is clear of shortage and surplus, or is in equilibrium, when the demand curve and supply curve intersect.

4 0

3 years ago

Read 2 more answers

In a SWOT analysis, increasing gasoline prices would represent a potential __________ for manufacturers of electric cars.

tester [92]

Answer: Opportunity

Explanation:

SWOT analysis measures the strength, weakness, opportunities and threats of an individual/organization in the areas they operate in. Manufacturers of electric cars would see increase in gasoline prices as an opportunity, as people would want to buy more electric cars.

4 0

3 years ago

You purchase one IBM July 120 put contract for a premium of $5. You hold the option until the expiration date when IBM stock is

grin007 [14]

Answer: Net loss = $2

Explanation:

Given that,

Purchase one IBM July 120 put contract for a premium of $5

IBM stock is at $123 per share on the market

In buying these kind of call option, a person can makes the profit if the future price of the share is greater than the strike price.

Here,

Profit = $123 - $120 = $3

But, we have to deduct the premium paid that is $5

Therefore,

Net loss = Profit - premium paid

= 3 - 5

=$2 ⇒ This much loss realize on a the investment.

4 0

3 years ago

Caveman Clubs Inc. tested a new graphite golf club that they have developed, Model X-5. They did a series of experiments with go

Ostrovityanka [42]

Answer:

The Answer is B. Quantitative data

Explanation:

The testing on the golf club, determined a improvement in the driving distance and this was measured numerically and showed in form of a percentage in comparison with average measurements.

When the information is presented with numerical data support, we can say its a quantitative data, because it tells us "how much?".

When the information is presented just with adjetives, telling us about the performance its a qualitative data, because it tell us "how things happened?"

A control variable is the data that is going to modified in order to see changes is the independent variable. In this case, the control variable could be the weight of the club (assumption), and the independent variable the driving distance data(not percentage).

4 0

3 years ago

The account cash overage is which type of account? an asset account a liability account a miscellaneous revenue account a miscel

spayn [35]

The account cash overage is a type of revenue account. A revenue account is where the revenues are considered to be the assets in which is being earned by a particular person handling business activities or operations in which an account cash overage is.

5 0

3 years ago