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What is circular flow of income ?...

What is circular flow of income ?

Text Solution

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Circular flow of income/product implies the flow of goods and services or the flow of money across different sectors of an economy. Each flow shows interdependence among sectors.
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What is meant by circular flow of income ? Distinguish between real flow and money flow.

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Knowledge Check

  • Which of the following is a phase of circular flow of income ?

    A
    Generation phase
    B
    Distribution phase
    C
    Disposition phase
    D
    All of these
  • How many phases are there in circular flow of income?

    A
    2
    B
    3
    C
    6
    D
    5
  • A phase of circular flow of income :

    A
    production
    B
    distribution
    C
    disposition
    D
    all of these.
  • Similar Questions

    Explore conceptually related problems

    What is meant by circular flow of income? Distinguish between Real Flow and Money Flow.

    What are the three phases of circular flow of income ?

    Generation and distribution are the two phases in circular flow of income.

    What are the different phases of a circular flow of income ?

    Name three phases of circular flow of income.