Identify the correct statement in the context of Circular Flow of Income in an economy Option 1: Household receives factor services from firms. Option 2: Household invests while firm saves. Option 3: Firms produce goods and services. Option 4: Household supplies factor services to Government.

Answer: Firms produce goods and services. Solution: Correct statement is: Firms -> produce goods and services -> for consumers . Household: supplies labor -> to firms. Firm: produces goods -> and services. Government: regulates economy -> and firms.

Macro

National Income

Easy

Identify the correct statement in the context of Circular Flow of Income in an economy

Household receives factor services from firms.

Household invests while firm saves.

Firms produce goods and services.

Household supplies factor services to Government.

✅ Correct Option: 3

Correct statement is: Firms -> produce goods and services -> for consumers.

Household: supplies labor -> to firms.
Firm: produces goods -> and services.
Government: regulates economy -> and firms.

2026: 6 June Shift 1

The benefits (or harms) a firm or an individual causes to another for which they are not paid (or penalised). What it is called?

2025: 22 May Shift 2

Which of the following indicate that the goods and services are evaluated at some constant set of prices ?

2022: 30 Aug Shift 2

Which of the following formula is correct ?

2026: 31 May Shift 1

	Firm-A	Firm-B
Intermediate consumption	10	20
Sales	50	75
Value added	?	?

From the above table, find the value added figure by Firm-B and Firm-A respectively.

2026: 20 May Shift 1

When there is an unexpected rise in shirt sales, this rise is called:

2026: 21 May Shift 2

Determine the GDP in the phase of distribution when firm X gives Rs.120 to the workers as wages, and keeps the 50 as its profits. Similarly, firm Y gives 250 as wages and keeps 70 as profits.

Identify the correct statement in the context of Circular Flow of Income in an economy

Solution

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