What are the limitations of Circular Flow Model
What are the limitations of Circular Flow Model?
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1. Does not depict transactions between households and between businesses.
2. Ignores government and the “rest of the world” in the decision-making process.
3. Does not explain how prices of products and resources are actually determined.
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In Wealth of Nations by Adam Smith, opined that the productivity of labor based primarily on: (w) workers’ education. (x) divisions of labor. (y) technologically advanced machines. (z) suitable wage rates. Discover Q & A Leading Solution Library Avail More Than 1452819 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1936014 Asked 3,689 Active Tutors 1452819 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
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