Question
Economics Question on Income and Expenditure Account
Identify the incorrect statement in the context of circular flow of Income:
(A) Household provides factor services to firms
(B) Household receives goods & services from firms
(C) Firms receives factor payments from households
(D) Factor services includes : land, labour, Capital and Entrepreneur
(E) In a simple economy, there are three sectors : Household, Firms & Government
Choose the correct answer from the options given below :
A
(A) & (C) only
B
(B) & (C) only
C
(C) & (E) only
D
(D) & (E) only
Answer
(C) & (E) only
Explanation
Solution
The correct option is (C) :(C) & (E) only.