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CBSE Class 12-commerce Macroeconomics Circular Flow of Income

Understand the circular flow of income from the CBSE Class 12 Commerce Economics chapter National Income Accounting by referring to the revision notes, sample papers, past years’ papers etc. at TopperLearning.

There may fundamentally be four kinds of contributions that can be made during the production of goods and services (a) contribution made by human labour, remuneration for which is called wage (b) contribution made by capital, remuneration for which is called interest (c) contribution made by entrepreneurship, remuneration of which is profit (d) contribution made by fixed natural resources (called ‘land’), remuneration for which is called rent. These four together contribute towards the National Income Accounting.