The Simple Circular-Flow Model for Households and Firms Is an Economic

question 140

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.

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Definitions:

Centered Moving Averages

A sequence of averages derived from successive segments of a set of numbers, calculated by placing the average directly in the center of the time period it covers.

Quarterly Enrollments

The number of individuals who enroll or register in a program or institution during a specific quarter of the year.

Business Statistics

The application of statistical methods and techniques to business data for the purpose of making informed decisions.

Moving Average

An analytical technique that examines trends by calculating averages from various segments of the entire data set.