The Circular-Flow Diagram Is a

question 193

Multiple Choice

The circular-flow diagram is a

• A)visual model of the economy.
• B)visual model of the relationships among money,prices,and businesses.
• C)model that shows the effects of government on the economy.
• D)mathematical model of how the economy works.

---

Definitions:

Income Tax

A tax imposed by the government on individuals or entities' income, varying according to income level and filing status.

After-Tax Profits

The net income a company retains after all taxes have been deducted from total revenue.

Board of Directors

A group of individuals elected by shareholders to oversee and make strategic decisions for a company.

Shareholders

Owners of shares in a corporation, holding a portion of the business's stock, and therefore having rights to dividends and a say in company matters.