Used Model Airplanes For Sale
best illustrates the circular flow model in action?
Which of the following best illustrates the circular flow model in action?
1) Bobbie goes to work and builds cars, and uses the income she receives to buy food at the grocery store.
2) Evan buys a new couch; the owner of the furniture store uses some of the money from the sale to pay her supplier, and uses the rest to take her family out to dinner.
3) Boeing experiences a surge in orders for new airplanes, prompting the company to hire more workers.
4) All of the above
Physicists tend to think of anything circular as having the beginning and end points collocated, which none of these examples does. I mean, #1 should end with the grocery store owner buying a car, right?
Obviously I’m no economist, but I’ll bet all 3 examples illustrate the model (equally poorly, in my mind!), because in each, money “flows through” the significant entities. Post this question where physicists can’t see it, and maybe you’ll get a better answer.
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