Question : Which of the following are true?

1. Circular flow of income does not takes place in case of closed economy. 
2. Physical flow involves exchange of goods and services.

Question : Which of the following are true?

1. Real flow is also known as nominal flow.
2. In two sector economy, total production is equal to total consumption.

Question : Which of the following statement are true?

1. At breakeven point, income and consumption are equal.
2. Equality between AD and AS implies the equality between income and AD.

Question : Which of the following are true?

1. Capital formation is the flow concept 
2. Inventory is a stock variable.

Question : Which of the following statement are true?

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