A household pays a private firm to collect its garden waste every fortnight. Part of the firm's earnings later goes to the government as tax. Which statement correctly describes how the main economic groups interact in this example?
Government provides the service to consumers, funded by tax collected from producers
Producers pay tax to government, which then subsidises the service consumers buy
Consumers pay tax to government, which then pays producers to provide the service
Consumers buy a service from producers, which then provide tax revenue for government
81 exam-style questions on AQA GCSE Economics 1.1 Economic foundations, covering 1.1.1a Needs and wants, 1.1.1b The central purpose of economic activity, 1.1.1c Key economic decisions, 1.1.1d The main economic groups, 1.1.2a The nature of an economic resource, 1.1.2b The four factors of production, 1.1.3a The basic economic problem and making choices, and 1.1.3b Opportunity cost. Each one has a worked solution and a mark scheme showing where the marks go.