National Income — Economics STD 11 Commerce — Question
Gujarat BoardEnglish MediumSTD 11 CommerceEconomicsNational Income2 Marks
Question
Explain the circulars flow of national income.
✓
Answer
Economy has two components :
Business firms
Families. Usually, business firms get services from families and produce commodities and serves. Business firms pay returns remuneration to the economic factors for joining in the production process.
Therefore, the flow of money moves from business firms to families.
Families spend their incomes to buy goods and services from business firms.
Thus, The flow of money moves from families to business firms and the flow of commodities and services flow towards families. Thus, the flow of national income is generated.
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.