Question

Which one of the following statements is incorrect?
1 There three major flows in the economy are total production, total income and total spending
2 There are two sets of markets in a simple economy goods markets and factor markets
3 In the simple circular flow of economic activity, real flows of goods and production factors and financial flows move in opposite directions
4 Firms are buyers in goods markets and sellers in factor markets, while households are buyers in factor markets and sellers in goods markets

Answer 1

4