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.

The answer is 'Firms produce goods and services.'. View full solution:

CUET Economics - Identify the correct statement in the context of Circular Flow of Income in an economy | PYQs + Solutions

CUET Economics

Macro

Easy

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

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