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Which of the Following Statements About a Simple Circular Flow

question 183

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Which of the following statements about a simple circular flow model is false?


Definitions:

Taxable Income

The portion of an individual's or a corporation's income that is subject to taxation by the government.

Marginal Tax Rate

The rate of tax applied to the last dollar of income or the next dollar of taxable income earned.

Chief Executive Officer

The highest-ranking executive in a company or organization, responsible for making major corporate decisions.

Great Recession

A significant decline in global economic activity that occurred from late 2007 through 2009, considered the most severe economic downturn since the Great Depression.

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