Question : Which of the following are true?

Generation and distribution are the two phases in circular flow of income.

There are no exports in a closed economy.

Option 1: Both are true.

Option 2: Both are false.

Option 3: Statement 1 is true and statement 2 is false.

Option 4: Statement 1 is false and statement 2 is true.

Question

Question : Which of the following are true?

Generation and distribution are the two phases in circular flow of income.
There are no exports in a closed economy.

Option 1: Both are true.

Option 2: Both are false.

Option 3: Statement 1 is true and statement 2 is false.

Option 4: Statement 1 is false and statement 2 is true.

Team Careers360 · Accepted Answer

Correct Answer: Statement 1 is false and statement 2 is true.

Solution : There are three phase of circular flow of income namely, generation, distribution and disposition.
A closed economy have no exports.
Hence, Option D is correct.

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Related Questions

Question : Which of the following are true? Circular flow of income does not takes place in case of closed economy. Physical flow involves exchange of goods and services.

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Question : Which of the following are true?

Circular flow of income does not takes place in case of closed economy.

Physical flow involves exchange of goods and services.

Question : Which of the following are true?

Real flow is also known as nominal flow.

In two sector economy, total production is equal to total consumption.

Question : Which of the following statement are true?

At breakeven point, income and consumption are equal.

Equality between AD and AS implies the equality between income and AD.

Question : Which of the following are true?

Capital formation is the flow concept

Inventory is a stock variable.

Question : Which of the following statement are true?

In a two sector economy, if consumption is equal to income, average propensity to save will be zero.

In a two sector economy if income is zero consumption will also be zero.