The two-sector model includes only households and firms. Treat it as the simplest circular flow model in exams.
Step 2
Why this answer is correct
The correct answer is A. परिवार और फर्म / Households and firms. The two-sector model includes only households and firms. Treat it as the simplest circular flow model in exams.
Step 3
Exam Tip
दो-क्षेत्रीय मॉडल में केवल परिवार और फर्म शामिल होते हैं। परीक्षा में इसे सबसे सरल आय चक्र मानें।
Households provide factor services such as land labour capital and enterprise to firms. In exams remember households as factor owners.
Step 2
Why this answer is correct
The correct answer is B. कारक सेवाएं / Factor services. Households provide factor services such as land labour capital and enterprise to firms. In exams remember households as factor owners.
Step 3
Exam Tip
परिवार भूमि श्रम पूंजी और उद्यम जैसे कारक फर्मों को देते हैं। परीक्षा में परिवार को कारक स्वामी याद रखें।
Firms pay wages rent interest and profit for factor services. These payments are called factor income.
Step 2
Why this answer is correct
The correct answer is A. कारक आय / Factor income. Firms pay wages rent interest and profit for factor services. These payments are called factor income.
Step 3
Exam Tip
फर्म कारक सेवाओं के बदले मजदूरी किराया ब्याज और लाभ देती हैं। यही कारक आय कहलाती है।
B. वस्तुओं और सेवाओं का उत्पादन करना/Produce goods and services
Step 1
Concept
Firms produce goods and services by using factor services. This is the base of the production flow.
Step 2
Why this answer is correct
The correct answer is B. वस्तुओं और सेवाओं का उत्पादन करना / Produce goods and services. Firms produce goods and services by using factor services. This is the base of the production flow.
Step 3
Exam Tip
फर्म कारक सेवाओं का उपयोग करके वस्तुओं और सेवाओं का उत्पादन करती हैं। यही उत्पादन प्रवाह का आधार है।
C. वस्तुओं और सेवाओं की खरीद के लिए/Buying goods and services
Step 1
Concept
Households use their income to buy goods and services from firms. This gives consumption expenditure to firms.
Step 2
Why this answer is correct
The correct answer is C. वस्तुओं और सेवाओं की खरीद के लिए / Buying goods and services. Households use their income to buy goods and services from firms. This gives consumption expenditure to firms.
Step 3
Exam Tip
परिवार अपनी आय से फर्मों की वस्तुएं और सेवाएं खरीदते हैं। इससे फर्मों को उपभोग व्यय मिलता है।
D. कारक सेवाओं और वस्तुओं के प्रवाह/Flow of factor services and goods
Step 1
Concept
Real flow involves the exchange of goods services and factor services. Money payment is not the main focus here.
Step 2
Why this answer is correct
The correct answer is D. कारक सेवाओं और वस्तुओं के प्रवाह / Flow of factor services and goods. Real flow involves the exchange of goods services and factor services. Money payment is not the main focus here.
Step 3
Exam Tip
वास्तविक प्रवाह में वस्तुओं सेवाओं और कारक सेवाओं का आदान-प्रदान होता है। इसमें मुद्रा भुगतान मुख्य नहीं होता।
A. मुद्रा के रूप में भुगतान का प्रवाह/Flow of payments in money form
Step 1
Concept
Money flow shows the flow of income and expenditure in money form. It moves opposite to the real flow.
Step 2
Why this answer is correct
The correct answer is A. मुद्रा के रूप में भुगतान का प्रवाह / Flow of payments in money form. Money flow shows the flow of income and expenditure in money form. It moves opposite to the real flow.
Step 3
Exam Tip
मौद्रिक प्रवाह में आय और व्यय का मुद्रा में प्रवाह दिखाया जाता है। यह वास्तविक प्रवाह के विपरीत दिशा में चलता है।
Factor services of labour land capital and enterprise are bought and sold in the factor market. Firms are the buyers of these services.
Step 2
Why this answer is correct
The correct answer is B. कारक सेवाएं / Factor services. Factor services of labour land capital and enterprise are bought and sold in the factor market. Firms are the buyers of these services.
Step 3
Exam Tip
कारक बाजार में श्रम भूमि पूंजी और उद्यम की सेवाएं खरीदी और बेची जाती हैं। फर्म इनके खरीदार होती हैं।
In the product market firms sell goods and services to households. Households are the buyers.
Step 2
Why this answer is correct
The correct answer is C. वस्तुएं और सेवाएं / Goods and services. In the product market firms sell goods and services to households. Households are the buyers.
Step 3
Exam Tip
उत्पाद बाजार में फर्म परिवारों को वस्तुएं और सेवाएं बेचती हैं। परिवार इनके खरीदार होते हैं।
Households are considered the owners of factors of production. They provide them to firms for production.
Step 2
Why this answer is correct
The correct answer is D. परिवार / Households. Households are considered the owners of factors of production. They provide them to firms for production.
Step 3
Exam Tip
परिवार उत्पादन कारकों के स्वामी माने जाते हैं। वे इन्हें फर्मों को उत्पादन के लिए उपलब्ध कराते हैं।
B. क्षेत्रों की पारस्परिक निर्भरता/Mutual dependence of sectors
Step 1
Concept
The circular flow of income shows that households and firms depend on each other. It is a base for understanding national income.
Step 2
Why this answer is correct
The correct answer is B. क्षेत्रों की पारस्परिक निर्भरता / Mutual dependence of sectors. The circular flow of income shows that households and firms depend on each other. It is a base for understanding national income.
Step 3
Exam Tip
आय का चक्रीय प्रवाह बताता है कि परिवार और फर्म एक-दूसरे पर निर्भर हैं। यह राष्ट्रीय आय की समझ का आधार है।
There is no government in the two-sector model so taxes are not considered. A closed economy also has no foreign trade.
Step 2
Why this answer is correct
The correct answer is B. कर / Tax. There is no government in the two-sector model so taxes are not considered. A closed economy also has no foreign trade.
Step 3
Exam Tip
दो-क्षेत्रीय मॉडल में सरकार नहीं होती इसलिए कर नहीं माना जाता। बंद अर्थव्यवस्था में विदेश व्यापार भी नहीं होता।
A. क्योंकि यह बंद अर्थव्यवस्था मानता है/Because it assumes a closed economy
Step 1
Concept
The two-sector model is based on the assumption of a closed economy. Therefore imports and exports are not included.
Step 2
Why this answer is correct
The correct answer is A. क्योंकि यह बंद अर्थव्यवस्था मानता है / Because it assumes a closed economy. The two-sector model is based on the assumption of a closed economy. Therefore imports and exports are not included.
Step 3
Exam Tip
दो-क्षेत्रीय मॉडल बंद अर्थव्यवस्था की मान्यता पर आधारित होता है। इसलिए आयात और निर्यात शामिल नहीं होते।
Labour service is a factor service and its physical exchange comes under real flow. The money payment is a separate flow.
Step 2
Why this answer is correct
The correct answer is C. वास्तविक प्रवाह / Real flow. Labour service is a factor service and its physical exchange comes under real flow. The money payment is a separate flow.
Step 3
Exam Tip
श्रम सेवा एक कारक सेवा है और इसका भौतिक आदान-प्रदान वास्तविक प्रवाह में आता है। मुद्रा भुगतान अलग प्रवाह होता है।
D. कारक स्वामी और उपभोक्ता/Factor owners and consumers
Step 1
Concept
Households provide factor services and consume goods. Therefore they have two main roles.
Step 2
Why this answer is correct
The correct answer is D. कारक स्वामी और उपभोक्ता / Factor owners and consumers. Households provide factor services and consume goods. Therefore they have two main roles.
Step 3
Exam Tip
परिवार कारक सेवाएं देते हैं और वस्तुओं का उपभोग करते हैं। इसलिए उनकी दो मुख्य भूमिकाएं होती हैं।
A. उत्पादक और कारक खरीदार/Producers and factor buyers
Step 1
Concept
Firms buy factor services and produce goods. This is their main role in the two-sector model.
Step 2
Why this answer is correct
The correct answer is A. उत्पादक और कारक खरीदार / Producers and factor buyers. Firms buy factor services and produce goods. This is their main role in the two-sector model.
Step 3
Exam Tip
फर्म कारक सेवाएं खरीदती हैं और वस्तुओं का उत्पादन करती हैं। यही दो-क्षेत्रीय मॉडल में उनकी मुख्य भूमिका है।
A. मजदूरी किराया ब्याज और लाभ/Wages rent interest and profit
Step 1
Concept
Households receive wages rent interest and profit for factor services. These are all factor incomes.
Step 2
Why this answer is correct
The correct answer is A. मजदूरी किराया ब्याज और लाभ / Wages rent interest and profit. Households receive wages rent interest and profit for factor services. These are all factor incomes.
Step 3
Exam Tip
परिवारों को कारक सेवाओं के बदले मजदूरी किराया ब्याज और लाभ मिलते हैं। ये सभी कारक आय हैं।
B. क्योंकि आय परिवारों और फर्मों के बीच लगातार घूमती रहती है/Because income keeps moving between households and firms
Step 1
Concept
Income continuously moves between households and firms. Therefore it is called circular flow.
Step 2
Why this answer is correct
The correct answer is B. क्योंकि आय परिवारों और फर्मों के बीच लगातार घूमती रहती है / Because income keeps moving between households and firms. Income continuously moves between households and firms. Therefore it is called circular flow.
Step 3
Exam Tip
आय परिवारों और फर्मों के बीच लगातार आती-जाती रहती है। इसलिए इसे चक्रीय प्रवाह कहा जाता है।
C. पूरी आय उपभोग पर खर्च होती है/All income is spent on consumption
Step 1
Concept
In the simple two-sector model without saving all income becomes consumption expenditure. Firms receive the whole income back.
Step 2
Why this answer is correct
The correct answer is C. पूरी आय उपभोग पर खर्च होती है / All income is spent on consumption. In the simple two-sector model without saving all income becomes consumption expenditure. Firms receive the whole income back.
Step 3
Exam Tip
सरल दो-क्षेत्रीय मॉडल में बिना बचत के पूरी आय उपभोग व्यय बन जाती है। इससे फर्मों को पूरी आय वापस मिलती है।
D. सरकार और विदेश क्षेत्र अनुपस्थित होते हैं/Government and foreign sectors are absent
Step 1
Concept
The simple two-sector model assumes only households and firms. Therefore government and foreign sectors are excluded.
Step 2
Why this answer is correct
The correct answer is D. सरकार और विदेश क्षेत्र अनुपस्थित होते हैं / Government and foreign sectors are absent. The simple two-sector model assumes only households and firms. Therefore government and foreign sectors are excluded.
Step 3
Exam Tip
सरल दो-क्षेत्रीय मॉडल में केवल परिवार और फर्म माने जाते हैं। इसलिए सरकार और विदेश क्षेत्र को बाहर रखा जाता है।
Firms pay factor income to households in return for factor services. Identify this carefully in the income flow.
Step 2
Why this answer is correct
The correct answer is A. फर्मों से परिवारों को / Firms to households. Firms pay factor income to households in return for factor services. Identify this carefully in the income flow.
Step 3
Exam Tip
फर्म कारक सेवाओं के बदले परिवारों को कारक आय देती हैं। इसे आय प्रवाह में ध्यान से पहचानें।
Households pay firms for buying goods and services. This is consumption expenditure.
Step 2
Why this answer is correct
The correct answer is B. परिवारों से फर्मों को / Households to firms. Households pay firms for buying goods and services. This is consumption expenditure.
Step 3
Exam Tip
परिवार वस्तुओं और सेवाओं की खरीद पर फर्मों को भुगतान करते हैं। यही उपभोग व्यय है।
C. दोनों विपरीत दिशाओं में चलते हैं/Both move in opposite directions
Step 1
Concept
Real flow and money flow move in opposite directions. This is useful in diagram based questions.
Step 2
Why this answer is correct
The correct answer is C. दोनों विपरीत दिशाओं में चलते हैं / Both move in opposite directions. Real flow and money flow move in opposite directions. This is useful in diagram based questions.
Step 3
Exam Tip
वास्तविक प्रवाह और मौद्रिक प्रवाह एक-दूसरे के विपरीत दिशा में चलते हैं। यह चित्र आधारित प्रश्नों में उपयोगी है।
A. आयात और निर्यात नहीं होते/Imports and exports do not occur
Step 1
Concept
In a closed economy transactions with the foreign sector are not considered. Therefore imports and exports are absent.
Step 2
Why this answer is correct
The correct answer is A. आयात और निर्यात नहीं होते / Imports and exports do not occur. In a closed economy transactions with the foreign sector are not considered. Therefore imports and exports are absent.
Step 3
Exam Tip
बंद अर्थव्यवस्था में विदेशी क्षेत्र से लेन-देन नहीं माना जाता। इसलिए आयात और निर्यात अनुपस्थित होते हैं।
A. परिवारों का उपभोग व्यय/Household consumption expenditure
Step 1
Concept
When households buy goods their expenditure becomes firms receipts. This keeps the flow moving.
Step 2
Why this answer is correct
The correct answer is A. परिवारों का उपभोग व्यय / Household consumption expenditure. When households buy goods their expenditure becomes firms receipts. This keeps the flow moving.
Step 3
Exam Tip
परिवार जब वस्तुएं खरीदते हैं तो उनका व्यय फर्मों की प्राप्ति बनता है। यह चक्र को जारी रखता है।
B. फर्मों से कारक भुगतान/Factor payments from firms
Step 1
Concept
Household income comes from factor payments made by firms. It can be seen as a starting point of income flow.
Step 2
Why this answer is correct
The correct answer is B. फर्मों से कारक भुगतान / Factor payments from firms. Household income comes from factor payments made by firms. It can be seen as a starting point of income flow.
Step 3
Exam Tip
परिवारों की आय फर्मों द्वारा किए गए कारक भुगतान से आती है। इसे आय प्रवाह का आरंभिक बिंदु समझ सकते हैं।
C. परिवार और फर्म मुख्य क्षेत्र होते हैं/Households and firms are the main sectors
Step 1
Concept
In the two-sector model households and firms are the main sectors. Other sectors are removed for simplicity.
Step 2
Why this answer is correct
The correct answer is C. परिवार और फर्म मुख्य क्षेत्र होते हैं / Households and firms are the main sectors. In the two-sector model households and firms are the main sectors. Other sectors are removed for simplicity.
Step 3
Exam Tip
दो-क्षेत्रीय मॉडल में परिवार और फर्म ही मुख्य क्षेत्र होते हैं। अन्य क्षेत्रों को सरलता के लिए हटाया जाता है।
Households pay consumption expenditure to firms for goods and services. It becomes sales revenue for firms.
Step 2
Why this answer is correct
The correct answer is D. उपभोग व्यय / Consumption expenditure. Households pay consumption expenditure to firms for goods and services. It becomes sales revenue for firms.
Step 3
Exam Tip
परिवार वस्तुओं और सेवाओं के लिए फर्मों को उपभोग व्यय देते हैं। यह फर्मों की बिक्री आय बनता है।
Profit is factor income received for enterprise service. Remember it along with wages rent and interest.
Step 2
Why this answer is correct
The correct answer is B. कारक आय / Factor income. Profit is factor income received for enterprise service. Remember it along with wages rent and interest.
Step 3
Exam Tip
लाभ उद्यम की सेवा के बदले मिलने वाली कारक आय है। इसे मजदूरी किराया और ब्याज के साथ याद रखें।
Firms sell goods and services to households. Therefore households are the final buyers in the product market.
Step 2
Why this answer is correct
The correct answer is B. परिवार / Households. Firms sell goods and services to households. Therefore households are the final buyers in the product market.
Step 3
Exam Tip
फर्म वस्तुएं और सेवाएं परिवारों को बेचती हैं। इसलिए उत्पाद बाजार का अंतिम खरीदार परिवार होता है।
A. क्योंकि वास्तविक प्रवाह वस्तुओं और सेवाओं का प्रवाह है/Because real flow is the flow of goods and services
Step 1
Concept
Real flow shows physical goods services and factor services. Money payments come under money flow.
Step 2
Why this answer is correct
The correct answer is A. क्योंकि वास्तविक प्रवाह वस्तुओं और सेवाओं का प्रवाह है / Because real flow is the flow of goods and services. Real flow shows physical goods services and factor services. Money payments come under money flow.
Step 3
Exam Tip
वास्तविक प्रवाह भौतिक वस्तुओं सेवाओं और कारक सेवाओं को दिखाता है। मुद्रा भुगतान मौद्रिक प्रवाह में आता है।
Firms receive factor services from households for production. Households are factor owners in this model.
Step 2
Why this answer is correct
The correct answer is B. परिवारों से / From households. Firms receive factor services from households for production. Households are factor owners in this model.
Step 3
Exam Tip
फर्मों को उत्पादन के लिए कारक सेवाएं परिवारों से मिलती हैं। परिवार इस मॉडल में कारक स्वामी होते हैं।
Firms receive consumption expenditure for selling goods and services. It is money flow from households to firms.
Step 2
Why this answer is correct
The correct answer is A. उपभोग व्यय / Consumption expenditure. Firms receive consumption expenditure for selling goods and services. It is money flow from households to firms.
Step 3
Exam Tip
फर्मों को वस्तुओं और सेवाओं की बिक्री के बदले उपभोग व्यय मिलता है। यह परिवारों से फर्मों की ओर धन प्रवाह है।
A. क्योंकि इसमें केवल परिवार और फर्म शामिल होते हैं/Because it includes only households and firms
Step 1
Concept
The two-sector model includes only households and firms. Therefore it is the simplest flow model of national income.
Step 2
Why this answer is correct
The correct answer is A. क्योंकि इसमें केवल परिवार और फर्म शामिल होते हैं / Because it includes only households and firms. The two-sector model includes only households and firms. Therefore it is the simplest flow model of national income.
Step 3
Exam Tip
दो-क्षेत्रीय मॉडल में केवल परिवार और फर्म को शामिल किया जाता है। इसलिए यह राष्ट्रीय आय का सबसे सरल प्रवाह मॉडल है।
