Circular flow of economic activities

Q. Explain the circular flow of economic activities

Q. The supplies the land, labour, capital, and organization to the production unit.

1. household unit
2. factory unit
3. organising unit
4. office unit

Q. What is the relation between household units and production units?

1. They are directly dependent.
2. They are independent.
3. They are indirectly dependent.
4. None of the above

Q. Choose the right option describing the two statements given below.

Assertion(A): There is a circular flow of economic activities of production processes.

Reason(R): The household units provide the production units with factors of production when required.

1. A is true but R is false.
2. Both A and R are true and R is the correct explanation of A.
3. Both A and R are true but R is not the correct explanation of A.
4. A is false but R is true.