Describe the circular flow of income in a two-sector economy (without financial market).

Discuss briefly, the circular flow of income in a two sector economy with the help of a suitable diagram.

Discuss briefly, the circular flow of income in a two sector economy with the help of a suitable diagram.

What is meant by problem of double counting? How this problem can be avoided? OR Discuss briefly, the circular flow of income in a two sector economy with the help oi a suitable diagram. (ii) To consider only the value added of the output produced. OR Circular Flow of income in a two Sector economy : Household are owners of factors of production. They provide factor service to the frms (producing units ). Fims provide factors payments in exchange of their factor service . So, factor payments flow from the firms (producing units ) to households: Households pruchase good and service from the (producing units) for which they make payment to them. So consumption expenditure ( producing units) for which they make payment to them. So, consumption expenditure (speding on goods and services) flows from housedolds to the firm

What is ment by circular flow of income ?

"Flow of income is circular in a two-sector economy". Comment.

Explain the importance of circular flow of income.

"Flow of income is circular in a two- sector economy". Comment

Expain the Circular flow of income Or Distinguish between intermediate products and product Give examples