Home › UP Board Class 12 › economics › National Income Accounting › The circular flow of income shows the flow of go…
The circular flow of income shows the flow of goods, services and money between:
Aonly the rich and the poor
Bonly banks and government
Chouseholds and firms
Donly exporters and importers
Answer & Solution
Correct answer: C. households and firms
The circular flow links households (factor owners) and firms (producers).
Related questions
Income that households actually have available to spend or save, after taxes, is called:The branch of economics concerned with aggregates such as GDP, employment and the price leIn the expenditure method, national income is found by adding consumption, investment, govMarket price equals factor cost plus indirect taxes minus:The value of national income measured at the prices actually received by factors of producNet National Product (NNP) is obtained by subtracting ___ from GNP:Gross National Product (GNP) equals GDP plus:The fall in the value of fixed capital due to normal wear and tear is called: