Based on this model, households earn income when purchase in factor markets. Suppose Alyssa earns $550 per week working as work as a flight attendant for Flyaway Airlines. She uses $9 to get her car washed at Spotless Car Wash. Spotless Car Wash pays Tim $350 per week to wash cars. Tim uses $250 to purchase air travel to Hawaii from Flyaway Airlines. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market Alyssa spends $9 to get her car washed. Tim spends $250 to purchase air travel to Hawaii from Flyaway Airlines. for Elvaway Airlines
Based on this model, households earn income when purchase in factor markets. Suppose Alyssa earns $550 per week working as work as a flight attendant for Flyaway Airlines. She uses $9 to get her car washed at Spotless Car Wash. Spotless Car Wash pays Tim $350 per week to wash cars. Tim uses $250 to purchase air travel to Hawaii from Flyaway Airlines. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market Alyssa spends $9 to get her car washed. Tim spends $250 to purchase air travel to Hawaii from Flyaway Airlines. for Elvaway Airlines
Chapter1: The Role And Method Of Economics
Section: Chapter Questions
Problem 8P
Related questions
Question
![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
purchase
in factor markets.
Based on this model, households earn income when
Suppose Alyssa earns $550 per week working as work as a flight attendant for Flyaway Airlines. She uses $9 to get her car washed at Spotless Car
Wash. Spotless Car Wash pays Tim $350 per week to wash cars. Tim uses $250 to purchase air travel to Hawaii from Flyaway Airlines.
Identify whether each of the following events in this scenario occurs in the factor market or the product market.
Factor Market
Product Market
Event
Alyssa spends $9 to get her car washed.
Tim spends $250 to purchase air travel to Hawaii from Flyaway Airlines.
Ourca narns $550 ner week working for Flyaway Airlines.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcbc9612b-85e3-4a2b-8b9b-e1bb678b6bf4%2F38df48e9-be04-4b78-9da4-dfde3d09a2f6%2Feat68m_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
purchase
in factor markets.
Based on this model, households earn income when
Suppose Alyssa earns $550 per week working as work as a flight attendant for Flyaway Airlines. She uses $9 to get her car washed at Spotless Car
Wash. Spotless Car Wash pays Tim $350 per week to wash cars. Tim uses $250 to purchase air travel to Hawaii from Flyaway Airlines.
Identify whether each of the following events in this scenario occurs in the factor market or the product market.
Factor Market
Product Market
Event
Alyssa spends $9 to get her car washed.
Tim spends $250 to purchase air travel to Hawaii from Flyaway Airlines.
Ourca narns $550 ner week working for Flyaway Airlines.
![Factors of Production
Based on this model, households earn income when
purchase
in factor markets.
Suppose Alyssa earns $550 per week working as work as a flight attendant for Flyaway Airlines. She uses $9 to get her car washed at Spotless Car
Wash. Spotless Car Wash pays Tim $350 per week to wash cars. Tim uses $250 to purchase air travel to Hawaii from Flyaway Airlines.
Identify whether each of the following events in this scenario occurs in the factor market or the product market.
Event
Factor Market
Product Market
Alyssa spends $9 to get her car washed.
Tim spends $250 to purchase air travel to Hawaii from Flyaway Airlines.
Alyssa earns $550 per week working for Flyaway Airlines.
Which of the elements of this scenario represent a flow from a household to a firm? This could be a flow of dollars, inputs, or outputs. Check all that
apply.
O The $250 Tim spends to purchase air travel to Hawaii from Flyaway Airlines
U The $350 per week Tim earns working for Spotless Car Wash
Alyssa's labor
The car wash Alyssa receives](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcbc9612b-85e3-4a2b-8b9b-e1bb678b6bf4%2F38df48e9-be04-4b78-9da4-dfde3d09a2f6%2F8y4z8p_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Factors of Production
Based on this model, households earn income when
purchase
in factor markets.
Suppose Alyssa earns $550 per week working as work as a flight attendant for Flyaway Airlines. She uses $9 to get her car washed at Spotless Car
Wash. Spotless Car Wash pays Tim $350 per week to wash cars. Tim uses $250 to purchase air travel to Hawaii from Flyaway Airlines.
Identify whether each of the following events in this scenario occurs in the factor market or the product market.
Event
Factor Market
Product Market
Alyssa spends $9 to get her car washed.
Tim spends $250 to purchase air travel to Hawaii from Flyaway Airlines.
Alyssa earns $550 per week working for Flyaway Airlines.
Which of the elements of this scenario represent a flow from a household to a firm? This could be a flow of dollars, inputs, or outputs. Check all that
apply.
O The $250 Tim spends to purchase air travel to Hawaii from Flyaway Airlines
U The $350 per week Tim earns working for Spotless Car Wash
Alyssa's labor
The car wash Alyssa receives
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