A Circular-Flow Diagram Is a Model That

question 43

Multiple Choice

A circular-flow diagram is a model that

• A)helps to explain how participants in the economy interact with one another.
• B)helps to explain how the economy is organized.
• C)incorporates all aspects of the real economy.
• D)Both (a)and (b)are correct.

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Definitions:

Interpersonal Dimension

Aspects of social interaction and relationships among individuals, including communication and emotional exchange.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment.

Empirical Studies

Empirical studies are investigations grounded on observation, experimentation, or measurement, rather than theory alone, to acquire knowledge.

Scientific Thinking

A way of learning about the world through observing, identifying, describing, investigating, and theorizing about phenomena.