Assumptions and Models in Economics

• To create unrealistic scenarios
• To study international trade
• To make the complex world easier to understand (correct)
• To complicate the complex world

• The flow of factors of production between households and firms
• The flow of resources between households and firms
• The flow of goods and services between households and firms
• The flow of dollars between households and firms (correct)

• The market for goods and services and the market for factors of production (correct)
• The market for goods and services and the market for labor
• The market for labor and the market for factors of production
• The market for resources and the market for capital

<p>Labor, land, and capital (B)</p> Signup and view all the answers

<p>A simplified representation of reality (D)</p> Signup and view all the answers