WBCS.LIVE practice question

Which of the following is NOT true about the circular flow of income in a two-sector economy?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Total production is equal to total consumption.
  2. Factor payment is equal to factor income.
  3. Real Flow is more than money flow.
  4. Consumption expenditure is equal to factor income.

Correct answer and explanation

Correct answer: Real Flow is more than money flow.