Question

The flow of goods and services along with factors of production across different sectors in a barter economy is known as:

• A. Circular Flow
• B. Real Flow
• C. Monetary Flow
• D. Capital Flow

Hint:

Real flow means movement of goods, services and factor services. Money flow means movement of money payments.

Answer 1

The Correct Option is B

Concept:
In an economy, there are two main types of flows: Real Flow
and Money Flow
Real flow means the movement of goods, services and factor services. Money flow means the movement of money payments.
Step 1: Understand barter economy.
In a barter economy, goods and services are exchanged directly without money. So, there is no monetary flow.
Step 2: Understand real flow.
Real flow includes: flow of goods and services from firms to households
and flow of factor services from households to firms

Step 3: Connect with the question.
The question mentions: goods and services
and factors of production
This clearly refers to real flow.
Step 4: Final conclusion.
Therefore, the correct answer is: \[ \boxed{\text{Real Flow}} \] Hence: \[ \boxed{\text{(B)}} \]