The Money a Worker Invests in a 401(k) Retirement Account

question 34

True/False

The money a worker invests in a 401(k) retirement account reduces that worker's present taxable income.

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Definitions:

Circular-Flow Diagram

A visual model depicting the flow of goods, services, and money between households and businesses in an economy.

Circular-Flow Diagram

A visual model that shows how money moves through an economy between households, businesses, and the government.

Factors Of Production

The inputs used in the production of goods or services in the attempt to make an economic profit, including land, labor, capital, and entrepreneurship.

Economy

The system by which goods and services are produced, distributed, and consumed within a particular geographical region.