Markets for Goods and Services ! Firms Markets for Factors of Production Which o
ID: 1150504 • Letter: M
Question
Markets for Goods and Services ! Firms Markets for Factors of Production Which of the following is true regarding this economic modelf? 0 Because, in reality, the economy is very large, the simplicity of the circular-flow diagram makes it useless for the purposes of modeling how dollars and resources move throughout an economy O While simple, the circular-flow diagram can still be useful for the purposes of modeling how dollars and resources move throughout an economy Because it does not take into account international trade, the circular-flow diagram is useless for the purposes of modeling how dollars and resources move throughout an economy. Because it does not take into account the role of government, the circular-flow diagram is useless for the purposes of modeling how dollars and resources move throughout an economy.Explanation / Answer
Answer:- which of the following is true regarding this economic model
Correct Answer:- While simple, the circular flow diagram can still be useful for the purposes of modeling how dollars and resources move throughout an economy.
Reason:- This model still helpful in explaining the flow of a dollar in the economy.