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Solution:- Ans – (a) Explanation:- In a sector economy, savings is assumed to be zero, and real flow in the form of factors services and final goods and services are equal to money flow between firms and households in a…
Solution:- Ans – (c) Explanation: Real flow involves exchange of goods and services, thus statement 1 is correct. Real flow is known as physical flow not the nominal flow, thus statement 2 is false.
Solution:- Ans – (a) Explanation:- The main focus of macroeconomics is to determine the income and employment level of an economy. thus it is also known as Income and Employment Theory. Thus Assertion (A) and Reason (R) are correct and…
Solution:- Ans – (d) Explanation:- Real flow is not a nominal flow it is known as Physical Flow. Thus Assertion (A) is false. Real flow involves a flow of goods and services between firms and households. Thus Reason (R) is…
Solution:- Ans – (b) Explanation:- The money value of total production is equal to total consumption in case of circular flow in two sector economy as savings are zero. Thus Assertion is true. As there are only two sectors Households…
Solution:- Ans – (c) Assertion (A) is true as the stock variable does not have a time dimension as it is measured at a point of time. Thus Assertion (A) is true and Reason (R) is False.
Solution:- Ans – (a) correct Savings are assumed to be zero in two sector economy and households spend the entire factor income on consumption of goods and services. Thus, Assertion and Reason both are true and Reason (R) is the…
Distinguish between stock and flow Basis Stock Flow Meaning Stock variable refers to that variable, which is measured at a particular point of time Flow variable refers to that variable, which is measured over a period of time Time Dimension…
The four factors of production are Land Labour Capital Entrepreneur Remunerations of Four factors of productions Factors of Production Remuneration Land Rent Labour Wages Capital Interest Entrepreneur Profit
The four major sectors in an economy according to the macroeconomics point of view are: 1. Household Sector: It includes consumers of goods and services and also the owners of factors of production. They supply factors like land, labour, capital…