Goods and ServicesFirmsHouseholdsMarkets forFactors of ProductionBased on this model, households earn income whenpurchasein factor markets.Suppose Ana earns $500 per week working as an analyst for A-Plus Accountants. She uses $10 to get her car washed at Spotless Car Wash. SpotlessCar Wash pays Yakov $375 per week to wash cars. Yakov uses $125 to purchase tax services from A-Plus Accountants.Identify whether each of the following events in this scenario occurs in the factor market or the product market.EventFactor MarketProduct MarketAna spends $10 to get her car washed.Ana earns $500 per week working for A-Plus Accountants.Yakov earns $375 per week working for Spotless Car Wash.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 thatapply.O Ana's laborO The car wash Ana receivesO The $125 Yakov spends to purchase tax services from A-Plus AccountantsO The $375 per week Yakov earns working for Spotless Car Wash

Here, the given figure explains the circular flow model according to which firms and households have…

Answered: Goods and Services Firms Households…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Yvette currently earns a wage of $12.00 per hour; in other words, the amount of her paycheck each week is $12.00 per hour times the number of hours she works. Suppose the price of milk is $2.50 per gallon; in this case, Yvette's wage, in terms of the amount of milk she can buy with her paycheck, is gallons of milk per hour. When workers and firms negotiate compensation packages, they have expectations about the price level (and changes in the price level) and agree on a wage with those expectations in mind. If the price level turns out to be lower than expected, a worker's wage is than both the worker and employer expected when they agreed to the wage. Yvette and her employer both expected inflation to be 4% between 2012 and 2013, so they agreed, in a two-year contract, that she would earn $12.00 per hour in 2012 and $12.48 per hour in 2013. However, suppose inflation between 2012 and 2013 actually turned out to be 2%, not 4%. For example, suppose the…
Roger's World of Pets is considering adding cat grooming to the array of goods and services he currently provides. He estimates that consumers would be willing to pay $25 per cat for a 1 hr. cat grooming appointment. He also estimates that he would need 2 workers per cat (1 to hold the cat down and the other to groom the cat). Wages in this labor market are $15/hr. Using marginal analysis, Roger should: introduce cat grooming. do not offer cat grooming be on the fence ("indifferent") about introducing cat grooming. be unable to tell whether cat grooming is a good idea because we don't know how much he pays in rent for his shop.
FIGURE 2-13 Product Markets Households Firms Factor Markets Refer to Figure 2-13. Which of the followings statements is most accurate about payments for goods and services? They are received by households in the factor market. They are received by firms in the factor market. They flow in a clockwise direction. They flow in a counterclockwise direction.
John is trying to decide how to divide his time between his job as a stocker in the local grocery store, which pays $7 per hour for as many hours as he chooses to work, and cleaning windows for the businesses downtown. He makes $2 for every window he cleans. John is indifferent between the two tasks, and the number of windows he can clean depends on how many hours he spends cleaning in a day, as shown in the accompanying table. Time cleaning windows (hours/day) Total number of windows cleaned 0 1 2 3 4 5 0 7 11 14 16 17 How many hours a day should John spend cleaning windows? Select one: a. 2 b. 4 c. 1 d. 3 NEXT PAGE
Housing policy analysts debate the best way to increase the number of housing units available to low-income households. One strategy-the demand-side strategy is to provide people with housing vouchers, paid for by the government, which can be used to rent housing supplied by the private market. Another-a supply-side strategy-is to have the government subsidize housing suppliers or to build public housing. Using the line drawing tool, draw a single line to show the effect of a supply-side strategy. Properly label your line. Carefully follow the instructions above and only draw the required object. Rent ($) Market for Housing Quantity So •Do
Firms Markets for Goods and Services Markets for Factors of Production Based on this model, households earn income when Households purchase Suppose Neha earns $675 per week working as a programmer for Maction. She uses $8 to have dessert at Guilherme's Garden. Guilherme's Garden pays Lorenzo $500 per week to curate a wine list. Lorenzo uses $150 to purchase software from Maction. Event Neha spends $8 to have dessert. Lorenzo spends $150 to purchase software from Maction. Neha earns $675 per week working for Maction. 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 in markets for factors of production. 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 $150 Lorenzo spends to purchase software from Maction The $500 per…
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. Markets for Goods and Services Firms Households Markets for Factors of Production Based on this model, households earn income when firms v purchase factors v in factor markets. Suppose Teresa earns $875 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 Sam $350 per week to wait tables. Sam uses $200 to purchase legal service from Rowan and Martin Associates.
A supply curve of work hours can be backward-bending beyond some wage rate. Examples of backward-bending labor supply curves exist in academics and professional athletics. Once university (or college) professors attain tenure, their productivity (in some cases) tends to decline. The diminished productivity appears to reflect fewer hours being devoted to research. Michael Jordan (who was making over $40 million per year in salary and endorsements) quit professional basketball in 1993 to spend more time with his family, play golf, and try out for a major league baseball team. Under what circumstances will a labor supply curve bend backwards? Show this result in a labor-leisure choice diagram. Is leisure normal, inferior, or neither when the labor supply curve bends backward as the wage rate rises? Please identify the income and substitution effects of a reduction in work hours at higher pay.
Homework (Ch 05) The following graph input tool shows the daily demand for hotel rooms at the Peacock Hotel and Casino in Las Vegas, Nevada. To help the hotel management better understand the market, an economist identified three primary factors that affect the demand for rooms each night. These demand factors, along with the values corresponding to the initial demand curve, are shown in the following table and alongside the graph input tool. Demand Factor Initial Value $50,000 per year Average American household income Roundtrip airfare from San Francisco (SFO) to Las Vegas (LAS) $200 per roundtrip Room rate at the Grandiose Hotel and Casino, which is near the Peacock $250 per night Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool 500 Market for Peacock's…
John works in a shoe factory. He can work as many hours per day as he wishes at a wage rate w. Let C be the amount of dollars he spends on consumer goods and R. be the number of hours of leisure that he chooses. John's preferences are represented by U(C, R) = CR utility function Question 2 Part a John earns $8 an hour and has 18 hours per day to devote to labor or leisure, and he has $16 of nonlabor income per day. Draw John's indifference curves, budget constraints and solve for his optimal consumption and leisure choices.
ECON 122: Short Writing Assignment #3 Suppose there are two different labor markets, A and B, each with identical demand for labor curves. If the Supply curves are also identical, draw a graph of each labor market in the space below: Now, assume that Market A's working conditions - for some reason - become much harsher than that for Market B (perhaps they are more dangerous or unhealthy). Illustrate how this development would impact your graph(s) above. What impact would this have on the wages in Market A relative to Market B? How about on total employment in each market? Why?
Based on this model, firms earn revenue when Suppose Teresa earns $750 per week working as a pilot for Wingies. She uses $10 to take a yoga class at Big Bend. Big Bend pays Sam $475 per week to instruct yoga. Sam uses $350 to purchase international flights from Wingles. Event purchase Identify whether each of the following events in this scenario occurs in the factor market or the product market. Sam earns $475 per week working for Big Bend. Teresa spends $10 to take a yoga class. Teresa earns $750 per week working for Wingies. Factor Market Product Market in product markets. The $475 per week Sam earns working for Big Bend O Teresa's labor 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 yoga class Teresa receives The $350 Sam spends to purchase international flights from Wingies

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