For what reason do economists use a Circular Flow model? A. To show how wealth in an economy is distributed between social classes B. To show how several countries governments are able to trade with each other simultaneously C. To show how money moves between consumers businesses and governments D. To show how a business is able to gain market share in a new industry

Question

Social Studies

Derrick Bennett

4 May, 09:59

For what reason do economists use a Circular Flow model? A. To show how wealth in an economy is distributed between social classes B. To show how several countries governments are able to trade with each other simultaneously C. To show how money moves between consumers businesses and governments D. To show how a business is able to gain market share in a new industry

+4

Answers (1)

Know the Answer?

Darryl Ali · Answer 1

Economists use circular flow models as a way to illustrate the way a market economy works and how the various parts of that type of economy are linked to one another.