Economic Models, Such as the Circular-Flow Model

question 152

Multiple Choice

Economic models, such as the circular-flow model:

• A) distort reality in order to improve forecasting ability.
• B) predict phenomena without explaining them.
• C) explain phenomena without predicting them.
• D) include every detail and interrelation among variables that are being analyzed.
• E) capture the important elements of the problem under study.

---

Definitions:

Maturity

The state of being fully developed in body or mind, often associated with adult behavior or thinking.

Attentiveness

The quality of paying close attention to something or someone, showing alertness and focus.

Caudal

Pertaining to the tail or the posterior part of the body.

Cephalic

Pertaining to the head or the cranial region of the body.