Which of the following statements is NOT true about the two-sector model?
The government sector plays an important role.
In a two-sector model, the economy is simplified to include only two sectors: households and firms. There is no foreign sector, and the government sector's role, while important, is often simplified or excluded in basic models. The statement that 'Firms are the only producing sector in the economy' is the one that is NOT true, because the government sector can also produce goods and services.
Important Questions from Microeconomics
Which of the following statements is NOT correct about the factors that gave rise to the Consumer Movement in India?
The total value of goods and services traded is considered to be the _________ of trade.
Microfinance programmes were first created by Nobel prize winning Economist Muhummad Yunus in what decade?
What happens in case of market equilibrium:
(a) Market demand = market supply
(b) There is no excess supply in the market
Decrease of resources implies that production possibility curve:
