In the Simple Circular-Flow Diagram,households

question 252

Multiple Choice

In the simple circular-flow diagram,households

• A)are represented, but firms are not represented.
• B)own the factors of production.
• C)are buyers of inputs.
• D)directly receive revenue from the sale of goods and services.

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Definitions:

Expenditure Item

A specific category of spending, often detailed in budgets or financial reports, representing the purchase of goods or services.

Marginal Tax Rate

The rate of tax applied to the next dollar of income, indicating how much tax an individual will pay on an additional dollar of earnings.

Income Tax Schedule

A set of brackets that determine the tax rate applied to an individual's or corporation's income.

Average Tax Rate

The percentage of total income that is paid in taxes, calculated by dividing the total amount of taxes paid by the total income.