70.2K

Verified Solution

Link Copied!

The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the Inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs Markets for Goods and Services Firms Households Markets for Factors of Production Based on this model, households earn income when purchase In factor markets Suppose Eileen earns $550 per week working as a programmer for PC Pros. She uses $8 to have breakfast at Dinah's Diner. Dinah's Diner pays Clancy $225 per week to work as a short-order cook. Clancy uses $225 to purchase software from PC Pros. Based on this model, households earn income when purchase in factor markets Suppose Eileen earns $550 per week working as a programmer for PC Pros. She uses $8 to have breakfast at Dinah's Diner. Dinah's Diner pays Clancy $225 per week to work as a short-order cook. Clancy uses $225 to purchase software from PC Pros. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market Clancy spends $225 to purchase software from PC Pros Eileen earns $550 per week working for PC Pros. ololo Elleen spends $8 to have breakfast. Which of the elements of this scenario represent a flow from a firm to a household? This could be a flow of dollars, inputs, or outputs. Check all that apply The $225 Clancy spends to purchase software from PC Pros Eileen's labor The breakfast Eileen receives The $225 per week Clancy earns working for Dinah's Diner

Answer & Explanation Solved by verified expert

See Answer