1.
With the help of a diagram, explain the circular flow of income in a simple economy.
Approach:
Briefly highlight the concept of circular flow of income.
State the different phases of the flow of income, using a diagram.
Explain, in detail, the concept of circular flow of income in a simple economy using a diagram and conclude accordingly.
2.
Explain the meaning of Balance of Payments and give an account of various components
included within current and capital account.
Approach:
Briefly explain Balance of Payment and mention its components.
Explain Current and Capital accounts and also, mention their various components as well.
Concluding statement may contain the overall idea of BOP.
