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SSC Stenographer 2023 PYQ — Question 117

SSC Stenographer - 13 Oct 2023 - Shift 3 • General Awareness • Q117

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Which of the following is NOT true about the circular flow of income in a two-sector
economy?

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Correct answer: C

Explanation

The correct answer is option 3 i.e. Real Flow is more than money flow.

  • The circular flow of income demonstrates the interdependence between households and firms, with real flows and money flows being equal in a two-sector economy.
  • Therefore, the claim that 'Real flow is more than money flow' is incorrect, as both flows are balanced in this model.
  • In the context of the circular flow of income in a two-sector economy, the statement 'Real flow is more than money flow' is NOT true.