Questions and Answers
Which two sectors are primarily considered in the two-sector model of the economy?
a. Household and Business
In the two-sector model, what does the term "Household Sector" refer to?
Individuals and families
What is the main economic transaction between the Household Sector and the Business Sector in the two-sector model?
Goods and services exchange
Which of the following is a characteristic of the two-sector model?
Signup and view all the answers
In the context of the two-sector model, what is the primary function of the Business Sector?
Signup and view all the answers
Which economic concept is represented by the flow of money from households to businesses for the purchase of goods and services in the two-sector model?
Signup and view all the answers
In the two-sector model, what is the primary source of income for the Household Sector?
Signup and view all the answers
In the two-sector model, what represents the leakage from the circular flow of income?
Signup and view all the answers
Which of the following is a limitation of the two-sector model?
Signup and view all the answers
“Real flow” refers to the flow of
Signup and view all the answers
Real flow is also called
Signup and view all the answers
