The Circular-Flow Diagram Is an Example of

question 3

Multiple Choice

The circular-flow diagram is an example of

• A)a laboratory experiment.
• B)an economic model.
• C)a mathematical model.
• D)All of the above are correct.

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Definitions:

Political Office Seeker

An individual actively pursuing or intending to pursue election to a political position within government.

Government Spending

The total amount of money spent by the government on various sectors including education, defense, infrastructure, and health services.

Externality Problems

Situations where the actions of individuals or businesses have effects on third parties that are not accounted for in the market price.

Cost-Benefit Analysis

A systematic approach to estimating the strengths and weaknesses of alternatives used to determine the best action to achieve benefits while minimizing costs.