Question :
The phase of circular flow includes-
-
Generation
-
Distribution
-
Deposition
Option 1: Only 1
Option 2: Only 1&2
Option 3: Only 1&3
Option 4: All 1,2&3
Answer (1)
Correct Answer: All 1,2&3
Solution :
There are three different phases of circular flow of income which includes production of goods and services with the help of factor services in the generation phase. These factor services are being paid from firm to the households in the distribution process and the household spend on the goods and services produced by firms in the disposition phase.
Hence, Option D is correct.
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