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Economics

Circular flow of income: two-sector model

आय का चक्रीय प्रवाह: द्वि-क्षेत्रीय मॉडल

Study the Circular Flow of Income: Two-Sector Model in Class 12 Economics as part of National Income and Related Aggregates. This topic explains how households and firms interact through factor services, factor payments, consumption expenditure, and the production of goods and services. Students learn to distinguish real and money flows, understand the role of savings and investment, and see how equilibrium is represented when leakages equal injections. The model builds a foundation for analysing national income and macroeconomic activity.

Practice questions

01 What is the deepest conceptual conclusion in the two-sector model?

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