Business Studies, asked by tayalpalak, 1 year ago

Write the meaning of all three phases of circular flow?

Answers

Answered by brainlystargirl
46
Heya....

See here for your answer....

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Circular flow is the continuously holding flow of all goods and services in the economy , it refers to the cycle or generation of income in the production process and the expenditure done by others...

Three phases of circular flow are...

• General phase

In this firm produce goods and services by various factors of production..

• Distribution phase

This involve flow of income from firms to household means the payment of factors of production..

• Disposition phase

The income received by factors of production , by selling them.

Thank you
Answered by AsifAhamed4
48
❤️HEY MATE ❤️

Circular Flow of income refers to the continuous circular production, income generation and expenditure. There are three phases of circular flow. They are:

⭐PRODUCTION PHASE:in this phase firms produce goods and service with the help of factor services.

⭐INCOME PHASE:this phase involves the flow of income from firms to households.

⭐EXPENDITURE PHASE :the income received by factors of production is spent on goods and services produced by firms.

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