### 13. The Circular-Flow ModelThe 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.![Circular-Flow Diagram](circular_flow_diagram.png)**Diagram Explanation:**- The diagram consists of four main components: - **Firms:** Represented by a blue box on the left. - **Households:** Represented by a blue box on the right. - **Markets for Goods and Services:** Represented by a yellow box at the top. - **Markets for Factors of Production:** Represented by a yellow box at the bottom.- **Outer Green Arrows:** Indicate the flow of dollars. Dollars flow from households to firms through the markets for goods and services and return from firms to households through the markets for factors of production.- **Inner Red Arrows:** Indicate the flow of inputs and outputs. Inputs flow from households to firms through the markets for factors of production, while outputs flow from firms to households through the markets for goods and services.Based on this model, households earn income when ____ purchase ____ in factor markets.Suppose Ginny earns $600 per week working as a cook for Wingies. She uses $9 to take a spin class at Silver’s Gym. Silver’s Gym pays Eric $325 per week to work as a trainer. Eric uses $125 to purchase chicken wings from Wingies.### Identifying Market Events:Identify whether each of the following events in this scenario occurs in the factor market or the product market.| Event | Factor Market | Product Market ||--------------------------------------------------|:-------------:|:--------------:|| Eric earns $325 per week working for Silver’s Gym.| ◯ | ◯ || Ginny spends $9 to take a spin class. | ◯ | ◯ || Ginny earns $600 per week working for Wingies. | ◯ | ◯ |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.**⬜ The $125 Eric spends to purchase chicken wings from Wingies⬜ The $325 per week Eric earns working for Silver

An economic concept that illustrates the continuous movement of money and goods/services within an…

Based on this model, households earn income when purchase in factor markets. Suppose Ginny earns $600 per week working as a cook fo Wingies. She uses $9 to take a spin class at Silver's Gym. Silver's Gym pays Eric $325 per week to work as a trainer. uses $125 to purchase chicken wings from Wingies. Identify whether each of the following events in this scenar occurs in the factor market or the product market. Factor Market Product Market Event Eric eams $325 per week working for Silver's Gym. Ginny spends $9 to take a spin class. Ginny earns $600 per week working for Wingles. Which of the elements of this scenario represent a flow fr a household to a firm? This could be a flow of dollars, inp or outputs. Check all that apply. The $125 Eric spends to purchase chicken wings from Wingies The $325 per week Eric earns working for Silver's Gym Ginny's labor The spin class Ginny receives

Based on this model, households earn income when purchase in factor markets. Suppose Ginny earns $600 per week working as a cook fo Wingies. She uses $9 to take a spin class at Silver's Gym. Silver's Gym pays Eric $325 per week to work as a trainer. uses $125 to purchase chicken wings from Wingies. Identify whether each of the following events in this scenar occurs in the factor market or the product market. Factor Market Product Market Event Eric eams $325 per week working for Silver's Gym. Ginny spends $9 to take a spin class. Ginny earns $600 per week working for Wingles. Which of the elements of this scenario represent a flow fr a household to a firm? This could be a flow of dollars, inp or outputs. Check all that apply. The $125 Eric spends to purchase chicken wings from Wingies The $325 per week Eric earns working for Silver's Gym Ginny's labor The spin class Ginny receives

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter6: Tracking The U.s. Economy

Section: Chapter Questions

Problem 2.4P

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2. The circular-flow model 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. Based on this model, firms earn revenue when purchase in product markets. Suppose Latasha earns $550 per week working as work as a flight attendant for Flyaway Airlines. She uses $10 to have breakfast at Dinah's Diner. Dinah's Diner pays Jake $350 per week to work as a short-order cook. Jake 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 Latasha earns $550 per week working for Flyaway Airlines. Jake spends $250 to purchase air travel to Hawaii from Flyaway Airlines. Latasha spends $10 to have…
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2. The circular-flow model 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. Firms Markets for Goods and Services Markets for Factors of Production Based on this model, firms earn revenue when Event Households purchase Suppose Lucia earns $650 per week working as a corporate attorney for Rowan and Martin Associates. She uses $10 to order a mojito cocktail at Little Havana. Little Havana pays Kenji $350 per week to wait tables. Kenji uses $250 to purchase legal service from Rowan and Martin Associates. in product markets. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Factor Market Product Market Kenji earns $350 per week working for Little Havana. Lucia spends $10 to order a mojito cocktail. Kenji spends $250 to purchase legal service…
13. The circular-flow model 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. Based on this model, households earn income when_________ purchase______ in factor markets. Suppose Valerie earns $700 per week working as a programmer for PC Pros. She uses $10 to have breakfast at Dinah's Diner. Dinah's Diner pays Shen $400 per week to work as a short-order cook. Shen uses $125 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 Valerie spends $10 to have breakfast. Shen spends $125 to purchase software from PC Pros. Valerie earns $700 per week working for PC Pros. Which of the elements of this…
2. The circular-flow model 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. Firms Markets for Goods and Services Markets for Factors of Production Based on this model, households earn income when Households Deborah's labor purchase Suppose Deborah earns $650 per week working as an interior designer for Ourhouse. She uses $9 to go climbing at Wally's Climbing Wall. Wally's Climbing Wall pays Carlos $350 per week to work as a safety instructor. Carlos uses $250 to purchase furniture from Ourhouse. Event Carlos spends $250 to purchase furniture from Ourhouse. Carlos earns $350 per week working for Wally's Climbing Wall. Deborah earns $650 per week working for Ourhouse. Identify whether each of the following events in this scenario occurs in the factor market or the product market. in factor markets.…
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Course: Macroeconomics Assume that one day's labor in Argentina can produce either 20 units of cloth or 2 units of wine, while in Chile one day's labor can produce either 24 units of cloth or 12 units of wine. Question: What would you suggest each of these countries produce? Explain your answer. (Make sure to include the amount of cloth and amount of wine each country should produce.)
565995 CALCULATIONS Capital Goods 16 755559 CH 14 13 12 11 10 0 1 2 More ← Saving 3 Consumption Goods Produced Capital Goods Produced 4 5 6 7 8 Production Possibilities (Present) Production Possibilities (Future) 9 10 11 12 13 14 15 Consumption Goods More Consumption 4.0 7.5 Help Save & Exit
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IMF upgrades outlook for the global economy in 2023 Published: Wednesday | February 1, 2023 | 12:34 AM The outlook for the global economy is growing slightly brighter as China eases its zero-COVID policies and the world shows surprising resilience in the face of high inflation, elevated interest rates and Russia’s ongoing war against Ukraine. That’s the view of the International Monetary Fund, IMF, which now expects the world economy to grow 2.9 per cent this year. That forecast is better than the 2.7 per cent expansion for 2023 that the IMF predicted in October, though down from the estimated 3.4 per cent growth in 2022. The IMF noted that the world economy still faces serous risks. They include the possibility that Russia’s war against Ukraine war will escalate, that China will suffer a sharp increase in COVID cases and that high interest rates will cause a financial crisis in debt-laden countries. ### i. Explain THREE (3) main tasks and functions of the International Monetary Fund.…