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National Income Accounting
Question
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What is the principle of circular flow of income and product?

Answer

(i) In exchange process, the seller (producer) receives the same amount which the buyer (consumer) spends.
(ii) Goods and services flow in one direction and the money payment to acquire them flow in the return direction giving rise to a circular flow.

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Some More Questions From National Income Accounting Chapter

What is meant by macroeconomics?
or
Give two examples of macroeconomic studies. 
or
Why is study of problem of unemployment in India a macroeconomic study?

Define microeconomics. Give one/two examples of microeconomics. Is study of cotton textile industry a microeconomic study or macroeconomic study? 

Distinguish between microeconomics and macroeconomics. Give an example of showing the difference between microeconomics and macroeconomics.

Briefly explain the following basic concepts related to NI:
 National Income (NI).

Briefly explain the following basic concepts related to NI:
Final Goods and Intermediate Goods. 

Briefly explain the following basic concepts related to NI:
Consumption Goods and Capital Goods

Briefly explain the following basic concepts related to NI:
Flow and Stock Concepts

Briefly explain the following basic concepts related to NI:
Gross Investment and Net Investment

Briefly explain the following basic concepts related to NI:
Domestic (Economic) Territory

Briefly explain the following basic concepts related to NI:
Normal Residents