The circular flow model ignores a host of major economic institutions and activities. Focusing on only one basic fact about how the economy works is the model's
a. way of getting around the ceteris paribus assumption
b. disadvantage because it distorts reality
c. flaw because there is no one single fact about an economy
d. strength in providing some understanding about how the economy works
e. effectiveness in creating policy recommendations
D
Economics
You might also like to view...
Increased United States military expenditures and action in response to the terrorist attacks of September 11, 2001 suggest that military officials in the United States _____
a. could not wait to go to war b. view the War on Terror as a negative externality c. believe that military expenditures can act as a deterrent d. are incompetent
Economics
An example of a public good is: a. a tornado siren
b. a cake. c. a personal computer. d. a DVD player.
Economics