Question : In the circular flow of income ________ are the owners of factor of production and _______ produces goods and services.

Option 1: Households, firms

Option 2: Firms, households 

Option 3: Government, firms

Option 4: Foreign sector, government

Question : The flow of factor services from households to firms and corresponding flow of goods and services from firms to household. This mechanism is known as _____________.  

Option 1: Real flow

Option 2: Money flow

Option 3: Stock

Option 4: None of these.

Question : In the circular flow of income, households are the ______ of factors of production and ______ of goods and services.

Option 1: producers, consumers

Option 2: suppliers, consumers

Option 3: consumers, producers

Option 4: consumers, suppliers

Question : In the circular flow of income, firms are the ______ of goods and services and ______ of factors of production.

Option 1: consumers, producers

Option 2: suppliers, consumers

Option 3: producers, consumers

Option 4: consumers, suppliers

Question : Flow of Goods and Services and factors of production across different sectors in a barter economy is known as:

Option 1: Circular Flow

Option 2: Real Flow

Option 3: Monetary Flow

Option 4: Capital Flow

Question : When private sector does not find producing certain goods and services attractive, production of such goods and services is taken by the government. This refers to the ______ objective of Government Budget

Option 1: Reducing Inequalities of income and wealth

Option 2: Reducing regional disparity

Option 3: Reallocation of resources

Option 4: Economic stability