39 in the simple circular-flow diagram
The circular-flow diagram or circular-flow model is a graphical representation of the flows of goods and money between two distinct parts of the economy-market for goods and services where households purchase goods and services from firms in exchange for money. Primarily it looks at the way money goods and services move throughout the economy. ECO2072. Quiz 1. Fall 2016 Name:_____(1point) True/False (2 points each) Indicate whether the statement is true or false. Imagine a world much simpler than our own, a world with just two types of economic units households and business firms. In this world, households spend all of In the simple circular-flow diagram