Based on this model, households earn income when purchase in markets for factors of production. Suppose Simone earns $600 per week working as a corporate attorney for Rowan and Martin Associates. She uses $9 to order a mojito cocktail at Little Havana. Little Havana pays Rajiv $300 per week to wait tables. Rajiv uses $350 to purchase legal service from Rowan and Martin Associates. Identify whether each of the following events in this scenario occurs in the market for factors of production or the market for goods and services. Market for Factors of Market for Goods and Event Production Services Rajiv spends $350 to purchase legal service from Rowan and Martin Associates. Rajiv earns $300 per week working for Little Havana. Simone spends $9 to order a mojito cocktail. 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. O The $300 per week Rajiv earns working for Little Havana O The $350 Rajiv spends to purchase legal service from Rowan and Martin Associates O Simone's labor True or False: Gross domestic product (GDP) cannot be used to measure the economy's income. O True O False

Based on this model, households earn income when purchase in markets for factors of production. Suppose Simone earns $600 per week working as a corporate attorney for Rowan and Martin Associates. She uses $9 to order a mojito cocktail at Little Havana. Little Havana pays Rajiv $300 per week to wait tables. Rajiv uses $350 to purchase legal service from Rowan and Martin Associates. Identify whether each of the following events in this scenario occurs in the market for factors of production or the market for goods and services. Market for Factors of Market for Goods and Event Production Services Rajiv spends $350 to purchase legal service from Rowan and Martin Associates. Rajiv earns $300 per week working for Little Havana. Simone spends $9 to order a mojito cocktail. 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. O The $300 per week Rajiv earns working for Little Havana O The $350 Rajiv spends to purchase legal service from Rowan and Martin Associates O Simone's labor True or False: Gross domestic product (GDP) cannot be used to measure the economy's income. O True O False

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Drop box one option (firms or households) drop box two options (goods and services or labor and capital)

Based on this model, households earn income when
purchase
in markets for factors of production.
Suppose Simone earns $600 per week working as a corporate attorney for Rowan and Martin Associates. She uses $9 to order a mojito cocktail at
Little Havana. Little Havana pays Rajiv $300 per week to wait tables. Rajiv uses $350 to purchase legal service from Rowan and Martin Associates.
Identify whether each of the following events in this scenario occurs in the market for factors of production or the market for goods and services.
Market for Factors of
Market for Goods and
Event
Production
Services
Rajiv spends $350 to purchase legal service from Rowan and Martin
Associates.
Rajiv earns $300 per week working for Little Havana.
Simone spends $9 to order a mojito cocktail.
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.
O The $300 per week Rajiv earns working for Little Havana
O The $350 Rajiv spends to purchase legal service from Rowan and Martin Associates
O Simone's labor
True or False: Gross domestic product (GDP) cannot be used to measure the economy's income.
O True
O False

1. The economy's income and expenditure
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 markets for factors of production.
Suppose Simone earns $600 per week working as a corporate attorney for Rowan and Martin Associates. She uses $9 to order a mojito cocktail at
Little Havana. Little Havana pays Rajiv $300 per week to wait tables. Rajiv uses $350 to purchase legal service from Rowan and Martin Associates.
Identify whether each of the following events in this scenario occurs in the market for factors of production or the market for goods and services.
Market for Factors of
Market for Goods and
Event
Droductinn
Services
to search
96%

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