ASTER PUBLIC SCHOOL

WORKSHEET
CHAPTER -1 CIRCULAR FLOW OF INCOME

1. Define the circular flow of income

2. Discuss the concept of:

(i) Stock and Flow
(ii) Real Flow and Money Flow.

3. Describe the circular flow of income in a two-sector economy along with diagram.

4. Explain different phases of production in circular flow of income.

5. State whether following is true or false. Give reason for your answer
i. Capital formation is a flow.
ii. Real flow is also known as nominal flow
iii. National Income of a country is a stock concept.

6. Classify the following as stock and flow

i. Looses
ii. Savings
iii. Production of wheat in year 2019
iv. Population of India on 31 st March 2019