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Firms Households Markets for Factors of Production

Firms Households Markets for Factors of Production

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A4 economy income and expenditure
Goods and Services Firms Households Markets for Factors of Production purchase labor and capital in markets for factors of production. Based on this model, households earn Income when firms Suppose Yvette earns $625 per week working as a programmer for PC Pros. She uses $8 to order a mojito cocktall at Little Havana. Uttle Havana pays Sean $250 per week to wait tables. Sean uses $225 to purchase software from PC Pros. 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 Production Market for Goods and Services Event Sean earns $250 per week working for Little Havana. Sean spends $225 to purchase software from PC Pros. Yvette earns $625 per week working for PC Pros. 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 mojito Yvette receives O The $225 Sean spends to purchase software from PC Pros O The $250 per week Sean earns working for Little Havana True or False: The actual economy is more complicated than the simple one illustrated in this circular-flow diagram. O True False
Transcribed Image Text:Goods and Services Firms Households Markets for Factors of Production purchase labor and capital in markets for factors of production. Based on this model, households earn Income when firms Suppose Yvette earns $625 per week working as a programmer for PC Pros. She uses $8 to order a mojito cocktall at Little Havana. Uttle Havana pays Sean $250 per week to wait tables. Sean uses $225 to purchase software from PC Pros. 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 Production Market for Goods and Services Event Sean earns $250 per week working for Little Havana. Sean spends $225 to purchase software from PC Pros. Yvette earns $625 per week working for PC Pros. 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 mojito Yvette receives O The $225 Sean spends to purchase software from PC Pros O The $250 per week Sean earns working for Little Havana True or False: The actual economy is more complicated than the simple one illustrated in this circular-flow diagram. O True False
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