Which of the following statements regarding this economic model are true? Because, in reality, the economy is very large, the simplicity of the circular-flow diagram makes it useless for the purposes of modeling how dollars and resources move throughout an economy Because it does not take into account the role of government, the circular-fow diagram is useless for the purposes of modeling how dollars and resources move throughout an economy. While simple, the circular-flow diagram can still be useful for the purposes of modeling how dollars and resources move throughout an economy Because it does not take into account international trade, the circular-flow diagram is useless for the purposes of modeling how dollars and resources move throughout an economy.
Which of the following statements regarding this economic model are true? Because, in reality, the economy is very large, the simplicity of the circular-flow diagram makes it useless for the purposes of modeling how dollars and resources move throughout an economy Because it does not take into account the role of government, the circular-fow diagram is useless for the purposes of modeling how dollars and resources move throughout an economy. While simple, the circular-flow diagram can still be useful for the purposes of modeling how dollars and resources move throughout an economy Because it does not take into account international trade, the circular-flow diagram is useless for the purposes of modeling how dollars and resources move throughout an economy.
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter2: Thinking Like An Economist
Section: Chapter Questions
Problem 2CQQ
Related questions
Question
Note:-
- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
- Answer completely.
- You will get up vote for sure.
![Chapter 02 Homework
Firms
Markets for
Goods and Services
Markets for
Factors of Production
Households
Which of the following statements regarding this e amic model are true?
Because, in reality, the economy is very large, the simplicity of the circular-flow diagram makes it useless for the purposes of modeling
how dollars and resources move throughout an economy.
Because it does not take into account the role of government, the circular-flow diagram is useless for the purposes of modeling how
dollars and resources move throughout an economy..
While simple, the circular-flow diagram can still be useful for the purposes of modeling how dollars and resources move throughout an
economy.
Because it does not take into account international trade, the circular-flow diagram is useless for the purposes of modeling how dollars
and resources move throughout an economy.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffd24358e-5277-4b14-8b88-e8d23ef8e39d%2F70777abe-350c-43d6-946b-96d906906185%2F6lyxbeq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Chapter 02 Homework
Firms
Markets for
Goods and Services
Markets for
Factors of Production
Households
Which of the following statements regarding this e amic model are true?
Because, in reality, the economy is very large, the simplicity of the circular-flow diagram makes it useless for the purposes of modeling
how dollars and resources move throughout an economy.
Because it does not take into account the role of government, the circular-flow diagram is useless for the purposes of modeling how
dollars and resources move throughout an economy..
While simple, the circular-flow diagram can still be useful for the purposes of modeling how dollars and resources move throughout an
economy.
Because it does not take into account international trade, the circular-flow diagram is useless for the purposes of modeling how dollars
and resources move throughout an economy.
![1. Economic models
The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the
inner set of arrows (shown in red) shows the associated flow of inputs and outputs.
Firms
Markets for
Goods and Services
Markets for
Factors of Production
Households
Which of the following statements regarding this economic model are true?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffd24358e-5277-4b14-8b88-e8d23ef8e39d%2F70777abe-350c-43d6-946b-96d906906185%2Fd1zs7f7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. Economic models
The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the
inner set of arrows (shown in red) shows the associated flow of inputs and outputs.
Firms
Markets for
Goods and Services
Markets for
Factors of Production
Households
Which of the following statements regarding this economic model are true?
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Brief Principles of Macroeconomics (MindTap Cours…](https://www.bartleby.com/isbn_cover_images/9781337091985/9781337091985_smallCoverImage.gif)
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Essentials of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781337091992/9781337091992_smallCoverImage.gif)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![ECON MACRO](https://www.bartleby.com/isbn_cover_images/9781337000529/9781337000529_smallCoverImage.gif)
![Brief Principles of Macroeconomics (MindTap Cours…](https://www.bartleby.com/isbn_cover_images/9781337091985/9781337091985_smallCoverImage.gif)
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Essentials of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781337091992/9781337091992_smallCoverImage.gif)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![ECON MACRO](https://www.bartleby.com/isbn_cover_images/9781337000529/9781337000529_smallCoverImage.gif)
![Principles of Economics 2e](https://www.bartleby.com/isbn_cover_images/9781947172364/9781947172364_smallCoverImage.jpg)
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax