Question

what is two sector model economy??​

Answer 1

Answer ☆ﾟ.*･｡ﾟ

In the basic two-sector circular flow of income model, the economy consists of two sectors: (1) households and (2) firms. ... The firms then spend all of this income on factors of production such as labor, capital and raw materials, "transferring" all of their income to the factor owners (which are households).

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Answer 2

Answer:

• Hii.

• ❤️❤️.

• the circular flow model in the two sectors of economy is a hypothetical concept which state there are only two sector in the economy household sector and businessman sector.