Economists make assumptions d. to make the world easier to understand.
The two loops in the circular-flow diagram represent b. the flow of goods and services and the flow of dollars. A production possibility curve illustrates d. all of the above 7. In the production possibilities frontier shown, the movement from point C to point E was most likely caused by c. unemployment of resources. Economics deals primarily with the concept of b. scarcity. Prices rise when the government prints too much money.