15 Which statement best describes the circular flow model? (5 Points) It models the movement of money and resources throughout the economy. It represents interactions between sectors of the economy. It illustrates the flow of goods and services abroad. It analyzes the interaction between people and businesses.

Question

15 Which statement best describes the circular flow model? (5 Points) It models the movement of money and resources throughout the economy. It represents interactions between sectors of the economy. It illustrates the flow of goods and services abroad. It analyzes the interaction between people and businesses.

Answer 1

The circular flow model is a simplified representation of the economy that shows the flow of money and resources between different sectors. It illustrates how households and firms interact in the economy, with households providing factors of production to firms and receiving income in return. This income is then spent on goods and services produced by the firms. The model also shows the flow of goods and services from firms to households. Therefore, the statement that best describes the circular flow model is that it models the movement of money and resources throughout the economy.

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