Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Consider an economy where there is non-existence of money meaning money is not used for carrying on trade. What will be the flow in such an economy called as?

Options:

Capital flow

Nominal flow

Physical flow

Circular flow

Correct Answer:

Physical flow

Explanation:

The correct answer is option 3: Physical flow

Explanation: In an economy where money is not used for trade, the transactions are based on the exchange of goods and services, which is referred to as physical flow. This is because the flow of goods and services takes place without the use of money, implying a barter system where physical goods and services are exchanged directly.