Multiple Choice
The simple circular-flow model for households and firms is an economic model that focuses on the interaction between households and firms.Which of the following statements regarding the model is correct?
A) The model is missing the interaction between firms and the resource market.Therefore,it cannot predict well.
B) The model is missing the interaction between households and the product market.Therefore,it cannot predict well.
C) The model has too many simplifying assumptions,and it cannot be used to make predictions about the real world.
D) The model is a simplification of the real world,and it can be used to make predictions about the real world.
E) The model is missing the interaction between firms and the product market.Therefore,it cannot predict well.
Correct Answer:
Verified
Correct Answer:
Verified
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