With Reference to the Circular Flow of Income,how Is the Allocation

question 17

Multiple Choice

With reference to the circular flow of income,how is the allocation of resources largely decided?

• A)by central authorities only
• B)by central authorities and firms only
• C)by firms and households acting independently
• D)by political parties and firms only
• E)by individuals only

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Definitions:

Observed Responses

Observed responses refer to the actual outcomes or reactions recorded in an experiment or survey, following exposure to certain conditions or stimuli.

Linear Regression

A statistical method for modeling the relationship between a dependent variable and one or more independent variables by fitting a linear equation.

Standard Deviation

A measure of the dispersion or spread of a set of data points relative to their mean, showing how much variation exists.

Response Variable

The outcome variable that researchers aim to predict or explain through statistical models, observed in an experiment or study.