#Circular flow diagram with government free

Lawyers make up an excessive percentage of elected officials. Tariffs and import quotas generally reduce economic welfare. ĭespite their differences, with which proposition are two economists chosen at random most likely to agree?

A visual model of the economy, shows how dollars, inputs and outputs flow through markets among households and firms. The disagreement between these economists is most likely due to. The human resource that is willing to take on the risk to organize labor, land, and capital to produce goods and services. Without a bailout of severely distressed financial firms, the economy will experience a deep recession.

#Circular flow diagram with government free

Shen: Indeed, it's gotten crazy! A government bailout of severely distressed financial firms is unnecessary because free markets will properly price assets. Valerie: Thanks to recent financial crises, the concept of bailouts is a hot topic for debate among everyone these days. The following dialogue represents a portion of the transcript of their discussion: The host of the podcast is facilitating their debate over government bailouts. b) Because it does not take into account international trade, the circular-flow diagram is useless. Suppose that Shen, an economist from a business administration program in Georgia, and Valerie, another economist from an investigative reporting group, are both guests on a popular science podcast. Which of the following is true regarding this economic model a) Because it does not take into account the role of government, the circular-flow diagram is useless for the purposes of modeling how dollars and resources move throughout an economy.