Question

What is the circular flow model?
A. A model which shows the wealth that an economy generates
B. A model which shows the wealth that the world generates
C. A model that shows the recirculation of money in an economy
D. A model that shows the debt that an economy generates

Answer 1

Is the answer A?

Answer 2

Yes good job

Answer 3

In economics, a circular flow model is a diagram that is used to represent the monetary transactions in an economy. There are two flows present within the model including flows of physical things (goods or labor) and flows of money (what pays for physical things). https://www.boundless.com/economics/textbooks/1515/the-market-system-2/introducing-the-market-system-45/the-circular-flow-model-168-12266/