A Simplified Model That Shows How Households and Businesses Interact

question 41

Multiple Choice

A simplified model that shows how households and businesses interact with one another in the product market and resource market is known as the:

• A) basic economic model.
• B) production possibilities model.
• C) free trade model.
• D) circular flow model.

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Definitions:

Ease Of Warning

The simplicity with which potential risks or dangers can be communicated to the public or stakeholders.

Strict Product Liability

A legal doctrine that makes manufacturers, distributors, or retailers liable for damages caused by defective products, regardless of fault or negligence.

Reasonably Foreseeable

Refers to events or outcomes that can be predicted or expected by a person with regular intelligence and foresight.

Injured Party

A person or entity that has suffered harm or damage due to the actions or negligence of another, and may be entitled to compensation or remedy under the law.