IMPORTANT QUESTIONS

PART B: INTRODUCTORY MACRO ECONOMICS

Unit V : National Income and Related Aggregates

CHAPTER 11: Circular Flow of Income

1. What do you mean by Circular Flow of income?
2. Write the different phases of Circular Flow of income?
3. What is the difference between stock and flow?
4. Explain real flow?
5. What is money flow?
6. Distinguish between real flow and money flow?
7. Classify the following as stock and flow:-
1. Losses
2. National income of a country
3. Profit
4. Savings
5. Wealth
6. Production
8. Explain with diagram circular flow in a two-sector economy?
9. Describe the role of government sector in an economy?
10. “In a two-sector economy national product is equal to national income”. Comment.