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. Event Raphael spends $350 to purchase a sleep test from the Medical Clinic. Raphael earns $525 per week working for Guilherme's Garden. Susan earns $850 per week working for the Medical Clinic. 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 th apply. Susan's labor Market for Factors of Production Market for Goods and Servic The $350 Raphael spends to purchase a sleep test from the Medical Clinic The $525 per week Raphael earns working for Guilherme's Garden True or False: For the economy as a whole, expenditures must equal income. True
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. Event Raphael spends $350 to purchase a sleep test from the Medical Clinic. Raphael earns $525 per week working for Guilherme's Garden. Susan earns $850 per week working for the Medical Clinic. 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 th apply. Susan's labor Market for Factors of Production Market for Goods and Servic The $350 Raphael spends to purchase a sleep test from the Medical Clinic The $525 per week Raphael earns working for Guilherme's Garden True or False: For the economy as a whole, expenditures must equal income. True
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![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.
Event
Raphael spends $350 to purchase a sleep test from the Medical Clinic.
Raphael earns $525 per week working for Guilherme's Garden.
Susan earns $850 per week working for the Medical Clinic.
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.
Susan's labor
Market for Factors of Production Market for Goods and Services
The $350 Raphael spends to purchase a sleep test from the Medical Clinic
The $525 per week Raphael earns working for Guilherme's Garden
True or False: For the economy as a whole, expenditures must equal income.
True
False](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9258546b-0cd2-4d03-b6f3-ed5967c2726b%2F67cfb943-33d2-4609-a460-aab76c2f846e%2Fxr8cchd_processed.png&w=3840&q=75)
Transcribed Image Text: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.
Event
Raphael spends $350 to purchase a sleep test from the Medical Clinic.
Raphael earns $525 per week working for Guilherme's Garden.
Susan earns $850 per week working for the Medical Clinic.
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.
Susan's labor
Market for Factors of Production Market for Goods and Services
The $350 Raphael spends to purchase a sleep test from the Medical Clinic
The $525 per week Raphael earns working for Guilherme's Garden
True or False: For the economy as a whole, expenditures must equal income.
True
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.
Firms
Markets for
Goods and Services
Markets for
Factors of Production
Based on this model, households earn income when
Households
purchase
in markets for factors of production.
Suppose Susan earns $850 per week working a registered nurse for the Medical Clinic. She uses $8 to have dessert at Guilherme's Garden.
Guilherme's Garden pays Raphael $525 per week to curate a wine list. Raphael uses $350 to purchase a sleep test from the Medical Clinic.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9258546b-0cd2-4d03-b6f3-ed5967c2726b%2F67cfb943-33d2-4609-a460-aab76c2f846e%2Fs3dj7u6_processed.png&w=3840&q=75)
Transcribed Image Text: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.
Firms
Markets for
Goods and Services
Markets for
Factors of Production
Based on this model, households earn income when
Households
purchase
in markets for factors of production.
Suppose Susan earns $850 per week working a registered nurse for the Medical Clinic. She uses $8 to have dessert at Guilherme's Garden.
Guilherme's Garden pays Raphael $525 per week to curate a wine list. Raphael uses $350 to purchase a sleep test from the Medical Clinic.
Expert Solution
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Step 1
Circular flow model shows how the money transfers among house and firms through markets of goods and services and factors of production.
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