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NextQ7

(a) Discuss briefly the concept of circular flow of income in a two-sector model. (b) “Real Gross Domestic Product (GDP) is a better indicator of economic growth of a nation as compared to the Nominal Gross Domestic Product (GDP).” Do you agree with the given statement ? Justify your answer with a valid hypothetical numerical example.

Circular Flow of IncomeStudy Simplify SpecialPYQ1MCQ
Question 6

Choose the correct alternative to fill in the blanks (i) and (ii) in the figure. The figure is a two-sector circular flow between two boxes labelled "Household" and "Firms", with four flows : "(i) __________ Income" flowing from Firms to Household; "Factors of Production" flowing from Household to Firms; "Goods and Services" flowing from Firms to Household; and "(ii) __________ Expenditure" flowing from Household to Firms. Alternatives :

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