The Simplest Circular-Flow Model Shows the Interaction Between Households and Firms.In

question 87

Multiple Choice

The simplest circular-flow model shows the interaction between households and firms.In this model:

• A)only barter transactions take place.
• B)households and firms interact in the market for goods and services,but firms are the only participants in the factor markets.
• C)firms supply goods and services to households,which in turn supply factors of production to firms.
• D)attention is focused on real flows of goods,services,and factors of production,but money flows between households and firms are ignored for simplicity.

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Definitions:

Categorical Variables

Variables that represent categories and can take on values that are names or labels.

Dummy Variables

In statistical modeling, these are artificial variables created to represent an attribute with two or more distinct categories or levels.

Regression Analysis

A statistical method used to explore the relationship between a dependent variable and one or more independent variables.

Sum Of Squares

A statistical technique used to measure the dispersion or variation within a data set by squaring the differences from the mean and summing all the resulting squares.