Statement 1: In a two-sector economy with households and firms, there are no savings in the economy.

Statement 2: Real Flow in the form of factor services and final goods and services is equal to money flow between firms and households in a two-sector economy.

In the following questions, read the following statements and choose the correct alternative among those given below:


(a) Both the Statements are true.

(b) Both the Statements are false.

(c) Statement 1 is true and Statement 2 is false.

(d) Statement 2 is true and Statement 1 is false.

Anurag Pathak Changed status to publish November 18, 2023