Turning the Page in the Newspaper or a Magazine, Hitting

question 42

Multiple Choice

Turning the page in the newspaper or a magazine, hitting the mute button on the television, tossing unopened mail that looks like an ad, and deleting spam without looking at it are all examples of consumers ________ the message.

• A)decoding
• B)encoding
• C)perceiving
• D)filtering
• E)accepting

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Definitions:

Passive Activities

Economic activities in which the individual does not materially participate, often resulting in income or losses for tax purposes.

Passive Income

Income resulting from rental property, limited partnerships, or other enterprises in which a person is not actively involved.

Personal/Rental Property

Property owned by an individual that may be used for personal enjoyment or rented out to generate income.

Flow-Through Entities

Business entities that pass income directly to owners or investors, avoiding corporate income tax.