What is meant by the circular flow of income, Microeconomics

Assignment Help:

Problem 1:

a. Briefly explain and distinguish between a centrally planned, laissez-faire and mixed economy.

b. According to you, which type of economic system is most desirable? Why?

Problem 2:

a. Describe, with the aid of a diagram, what is meant by the circular flow of income.

b. Explain the problems involved in using national income data to compare standards of living in different countries.


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