ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Income is a flow of earnings per unit of time.

Detailed explanation-2: -Key Takeaways. The circular flow model demonstrates how money moves from producers to households and back again in an endless loop. In an economy, money moves from producers to workers as wages and then back from workers to producers as workers spend money on products and services.

Detailed explanation-3: -Cash flow and earnings are two different accounting concepts, featuring the time difference between cash movements and business transactions. A cash flow may not be reported as earnings unless it happens at the same time as a sale or expense transaction. On the other hand, earnings may be non-cash accounting income.

Detailed explanation-4: -Money Flow calculates the typical price multiplied by volume. Money Flow is the core component of the Money Flow Index (MFI) indicator. Money Flow itself is not an indicator, rather a mathematical function used to construct other indicators.

Detailed explanation-5: -A unit of account is something that can be used to value goods and services, record debts, and make calculations. Money is considered a unit of account and is divisible, fungible, and countable. With money being countable, it can account for profits, losses, income, expenses, debt, and wealth.