0 votes
2.8k views
in Business Studies Form 3 by
List down four assumptions of the circular flow of income in a two sector economy

1 Answer

0 votes
by
  1. There are only two sectors in the economy i.e firms of households
  2. Households spend all their incomes in buying goods and services
  3. Firms spend all their incomes paying for factors of production
  4. There’s no government intervention
  5. There is no foreign trade/closed economy
Welcome to EasyElimu Questions and Answers, where you can ask questions and receive answers from other members of the community.

6.4k questions

9.6k answers

6 comments

590 users

...