The circular Flow of the Economy

What two sectors on this chart send tax payments to the government?

• household

• business

• government

what kind of spending does the government engage in with households?

• tax payments

• resources

• transfer payments

what kind of spending does the government engage in with businesses?

• subsidies

• gov't goods and services

• tax payments

which sector has only one way of receiving income?

• household

• business

• government