According to the Circular Flow Model, Expenditures by One Person

question 14

Multiple Choice

According to the circular flow model, expenditures by one person translate:

• A) directly into income for someone else.
• B) indirectly into the value of that person's time.
• C) directly into his or her income.
• D) indirectly into the household's budget.

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Definitions:

Federal Income Tax

A tax levied by the United States federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Trade Fixtures

Articles of personal property that have been annexed to real property leased by a tenant during the term of the lease and that are necessary to the carrying on of a trade.

Substantial Damage

Significant physical harm or damage to a property or structure, often affecting its value, usability, or function.

Lease Term

The duration for which a lease agreement is valid, typically specifying start and end dates.