The circular flow model shows how the prices of goods and services are determined.
سرکولر فلو ماڈل یہ دکھاتا ہے کہ اشیاء اور خدمات کی قیمتیں کیسے مقرر ہوتی ہیں۔
- True
- False
Explanation
- The circular flow model shows the movement of goods, services, and money in an economy.
- It explains interaction between households and firms in product and factor markets.
- However, it does not directly explain how prices are determined.
- Price determination is explained by demand and supply analysis.
- Therefore, the statement is incorrect.
Last verified on 23-04-2026
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