Question:
Identify the correct statement in the context of Circular Flow of Income in a two-sector economy:
Identify the correct statement in the context of Circular Flow of Income in a two-sector economy:
Updated On: Oct 29, 2024
- Household receives factor services from firms
- Household invests while firm saves
- Firms produce goods and services
- Household supplies factor services to Government
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The Correct Option is C
Solution and Explanation
In a two-sector economy, firms produce goods and services while households supply labor and other factors of production.
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