Question

Simple economies can be described in terms of three major economic flows. These are:


income, spending and saving.


spending, production and saving.


income, saving and investment.


income, spending and production.


income, spending and net exports.

Answer 1

In simple economies, the three major economic flows can be best described as **income, spending, and production**. This framework illustrates how income generated from production is spent by consumers and businesses, which in turn fuels further production.