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What is the Circular flow of national income in four sector economy?
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∙ 11y ago
The economy is no longer closed and all other assumptions hold.
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∙ 11y ago
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Circular flow of income in a four sector economy?
product market
Explain four sector model with circular-flow diagram?
explain with the help of diagram circular flow of income model in a four sector economy?
What is the formula for finding countries national income?
Basically we calculate the national income on the basis of Indian economy that has been divided into 13 sub sectors under primary, secondary and tertiary sector.
What is three-sector economy?
In a Three-sector economy ,along with the household sector & business sector there is government sector too.Because the government can influence on the circular flow of income in 2 ways.1.It collects taxes[=T] from households & firms,and2.it makes various payments [=G] to household & business sectors.Here taxes can be taken as a lekage & government expenditure as an injection.
What are Disadvantages of primary sector?
less income unorganised sector cant contribute more for the economy
Circular flow of income in a four sector economy?
product market
Explain four sector model with circular-flow diagram?
explain with the help of diagram circular flow of income model in a four sector economy?
In the circular flow of a market economy, the working model assumes that three sectors of a normal economy do not exist. These are the financial sector, the overseas sector, and the _________ sector.?
Government
What is the formula for finding countries national income?
Basically we calculate the national income on the basis of Indian economy that has been divided into 13 sub sectors under primary, secondary and tertiary sector.
What is three-sector economy?
In a Three-sector economy ,along with the household sector & business sector there is government sector too.Because the government can influence on the circular flow of income in 2 ways.1.It collects taxes[=T] from households & firms,and2.it makes various payments [=G] to household & business sectors.Here taxes can be taken as a lekage & government expenditure as an injection.
What are Disadvantages of primary sector?
less income unorganised sector cant contribute more for the economy
Is Mexico's economy based on agriculture or industry?
It is neither. Mexico's economy is based on the services and commerce sector, which accounts for 69.5% of Mexico's national income and employs 58% of the labor force.
How much is national income in primary sector in India?
The average national income of the primary sector in India is $1,219 a year. By 2020, the amount is expected to rise to $4,200.
Circular flow of income in an open economy?
Balance of payments sector, Government expenditure Assignment Help, Tutor HelpCircular Flow of Income in a Four Sector EconomyTake the inflows and outflows of the household, business and government sectors in relation to the foreign sector. The household sector buys goods imported from overseas and makes payment for them which is leakage from the circular flow. The households may receive transfer payments from the foreign sector for the services rendered by them in foreign countries.Conversely, the business sector exports goods to foreign countries and its receipts are an injection in the circular flow. Likewise, there are many services rendered by business firms to foreign countries such as shipping, insurance, banking etc. for which they receive payments from overseas. These are the leakages from the circular flow.Like the business sector modern governments also export and import goods and services and lend to and borrow from foreign countries. For all the exports of goods, the government receives payments from abroad.Similarly, the government receives payments from foreigners when they visit the country as tourists and for receiving education etc. and also when the government provides shipping, insurance and banking services to foreigners through the state owned agencies. It also receives royalties, interest, dividends etc. for investments made abroad. These are injections into the circular flow.Conversely, the leakages are payments made for the purchase of goods and services to foreigners. In the in the below diagram, the circular flow of the four sector open economy with saving, taxes and imports shown as leakages from the circular flow on the right hand side of the diagram and investment, government purchases and exports as injections into the circular flow on the left side of the figure.Further, imports, exports and transfer payments have been shown to arise from the three domestic sectors -- the household, the business and the government. These outflows and inflows pass through the foreign sector which is also called the "balance of payments sector".If exports exceed imports, the economy has a surplus in the balance of payments. And if imports exceed exports, it has a deficit in the balance payments. But in the long run, exports of an economy must balance its imports. This is achieved by the foreign trade policies adopted by the economy.The whole analysis can be shown in simple equations:Y = C + I + G ......Equation (1)Where Y represents the production of goods and services, C for consumption expenditure, I for investment level in the economy and G for Government expenditure respectively.Now we introduce taxation in the model to equate the government expenditure.Therefore Y = C + S + T ..........Equation (2)Where S is saving T is taxation.By equating (1) and (2), we get, C + I + G = C + S + TTherefore, I + G = S + TWith the introduction of foreign sector, we divide investment into domestic investment (Id) and foreign investment (If) and get Id + If + G = S + TBut If = X -- M, where X is exports and M is imports.Id + (X -- M) + G = S + TId + (X -- M) = S + (T -- G)The equation shows the equilibrium condition in the circular flow of income and expenditure.Circular Flow of Income in a Four Sector EconomyOnline Live Tutor Balance of payments sector, Government expenditure:We have the best tutors in Economics in the industry. Our tutors can break down a complex Balance of payments sector, Government expenditure problem into its sub parts and explain to you in detail how each step is performed. This approach of breaking down a problem has been appreciated by majority of our students for learning Balance of payments sector, Government expenditure concepts. You will get one-to-one personalized attention through our online tutoring which will make learning fun and easy. Our tutors are highly qualified and hold advanced degrees. Please do send us a request for Balance of payments sector, Government expenditure tutoring and experience the quality yourself.Online Circular Flow of Income in a Four Sector Economy in a Four Sector Economy Help:If you are stuck with an Circular Flow of Income in a Four Sector Economy in a Four Sector Economy Homework problem and need help, we have excellent tutors who can provide you with Homework Help. Our tutors who provide Circular Flow of Income in a Four Sector Economy in a Four Sector Economy help are highly qualified. Our tutors have many years of industry experience and have had years of experience providing Circular Flow of Income in a Four Sector Economy in a Four Sector Economy Homework Help. Please do send us the Circular Flow of Income in a Four Sector Economy in Four Sector Economy problems on which you need help and we will forward then to our tutors for review.
What does Mexico spend most there money on?
If you mean as part of the federal budget, education is traditionally the largest receiver of income. If you mean as a whole economy, the services and trade sector has the largest share of national income.
What is the definition of corporate sector?
A Corporate Sector is a section of society consisting of Companies/Industries/Business Houses. They are the industrial development side of our society. They contribute to National Income Generation, Infrastructural Growth and Development of the Economy. They represent the Producer side of Economy and we represent the Consumer Side of Economy, We consume what they produce ( services included). They generate income, we help them generate the same. The y foster regional- national- societal growth, we enable them achieve their goals.
What method in India is used to measure national income in service sector?
national and output method
