If Lauren Builds a Circular-Flow Diagram Including Markets for Goods

question 71

Multiple Choice

If Lauren builds a circular-flow diagram including markets for goods and services, markets for factors of production and firms, will the model be able to accurately represent a simple economy?

• A)No, it is missing the government
• B)No, it is missing international trade
• C)No, it is missing households
• D)Yes

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Definitions:

Stable Governments

Governments that are capable of maintaining internal order, providing consistent governance, and are resilient in the face of political or economic challenges.

Taliban Regime

The political and militant organization that ruled Afghanistan from 1996 until 2001 and regained control in 2021, known for its strict interpretation of Islamic law.

Axis of Evil

A political term used by U.S. President George W. Bush to describe governments that he believed were sponsoring terrorism and seeking weapons of mass destruction, notably Iran, Iraq, and North Korea.

Coalition of the Willing

A term used to describe a group of nations that unite, forming a military or political alliance, often for specific interventions or actions, such as the 2003 invasion of Iraq led by the United States.