Naval officers in pay grades ______________ are called flag officers.

Flag officers are defined as senior naval officers who hold the rank of O-7 (Rear Admiral Lower Half) and higher. This categorization includes the ranks of Rear Admiral (upper half), Vice Admiral, and Admiral. Flag officers typically have significant responsibilities including command of naval fleets and high-level strategic positions within the Navy and Department of Defense. The designation "flag officer" originates from their ability to fly a flag that signifies their command, which typically signifies a higher level of authority and leadership within naval operations.

In contrast, the lower ranks, such as O-1 to O-3 and O-4 to O-6, do not meet the threshold for flag officer designation, as they are junior officers and do not possess the same level of command authority and responsibilities typically associated with flag officers. Thus, the distinction of flag officers beginning at O-7 establishes a clear classification of senior leadership within the naval hierarchy.