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Suppose Dina earns $500 per week working as a corporate attorney for Rowan and Martin Associates. She uses $9 to get her car washed at Spotless Car Wash. Spotless Car Wash pays Charles $425 per week to wash cars. Charles uses $400 to purchase legal service from Rowan and Martin Associates. Identify whether each of the following events in this scenario occurs in the factor markets or the product markets. Event Factor markets Product markets Dina spends $9 to get her car washed. Dina earns $500 per week working for Rowan and Martin Associates. Charles spends $400 to purchase legal service from Rowan and Martin Associates. Explanation: Close Explanation a In this scenario, households sell inputs in the factor markets when Dina supplies her labour to Rovan and Martin Associates and when Charles supplies his labour to Spotless Car Wash. Moreover, a firm sells goods and services to a household in the product markets when Spotless Car Wash provides the car wash to Dina and Rovan and Martin Associates provides the legal service to Charles. Which of the elements of this scenario represent a flow from a household to a firm? This could be a flovw of dollars, inputs, or outputs. Check all that apply. V O The work Dina does for Rowan and Martin Associates x O The $425 per week Charles earns working for Spotless Car Wash V The $400 Charles spends to purchase legal service from Rowan and Martin Associates X O The car wash Dina receives

Suppose Dina earns $500 per week working as a corporate attorney for Rowan and Martin Associates. She uses $9 to get her car washed at Spotless Car Wash. Spotless Car Wash pays Charles $425 per week to wash cars. Charles uses $400 to purchase legal service from Rowan and Martin Associates. Identify whether each of the following events in this scenario occurs in the factor markets or the product markets. Event Factor markets Product markets Dina spends $9 to get her car washed. Dina earns $500 per week working for Rowan and Martin Associates. Charles spends $400 to purchase legal service from Rowan and Martin Associates. Explanation: Close Explanation a In this scenario, households sell inputs in the factor markets when Dina supplies her labour to Rovan and Martin Associates and when Charles supplies his labour to Spotless Car Wash. Moreover, a firm sells goods and services to a household in the product markets when Spotless Car Wash provides the car wash to Dina and Rovan and Martin Associates provides the legal service to Charles. Which of the elements of this scenario represent a flow from a household to a firm? This could be a flovw of dollars, inputs, or outputs. Check all that apply. V O The work Dina does for Rowan and Martin Associates x O The $425 per week Charles earns working for Spotless Car Wash V The $400 Charles spends to purchase legal service from Rowan and Martin Associates X O The car wash Dina receives

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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Suppose Dina earns $500 per week working as a corporate attorney for Rowan and Martin Associates. She uses $9 to get her car washed at Spotless Car Wash. Spotless Car Wash pays Charles $425 per week to wash cars. Charles uses $400 to purchase legal service from Rowan and Martin Associates. Identify whether each of the following events in this scenario occurs in the factor markets or the product markets. Factor markets Product markets Event Dina spends $9 to get her car washed. Dina earns $500 per week working for Rowan and Martin Associates. Charles spends $400 to purchase legal service from Rowan and Martin Associates. Explanation: Close Explanation a In this scenario, households sell inputs in the factor markets when Dina supplies her labour to Rowan and Martin Associates and when Charles supplies his labour to Spotless Car Wash. Moreover, a firm sells goods and services to a household in the product markets when Spotless Car Wash provides the car wash to Dina and Rowan and Martin Associates provides the legal service to Charles. 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. V O The work Dina does for Rowan and Martin Associates x O The $425 per week Charles earns working for Spotless Car Wash V O The $400 Charles spends to purchase legal service from Rowan and Martin Associates X O The car wash Dina receives
Transcribed Image Text:Suppose Dina earns $500 per week working as a corporate attorney for Rowan and Martin Associates. She uses $9 to get her car washed at Spotless Car Wash. Spotless Car Wash pays Charles $425 per week to wash cars. Charles uses $400 to purchase legal service from Rowan and Martin Associates. Identify whether each of the following events in this scenario occurs in the factor markets or the product markets. Factor markets Product markets Event Dina spends $9 to get her car washed. Dina earns $500 per week working for Rowan and Martin Associates. Charles spends $400 to purchase legal service from Rowan and Martin Associates. Explanation: Close Explanation a In this scenario, households sell inputs in the factor markets when Dina supplies her labour to Rowan and Martin Associates and when Charles supplies his labour to Spotless Car Wash. Moreover, a firm sells goods and services to a household in the product markets when Spotless Car Wash provides the car wash to Dina and Rowan and Martin Associates provides the legal service to Charles. 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. V O The work Dina does for Rowan and Martin Associates x O The $425 per week Charles earns working for Spotless Car Wash V O The $400 Charles spends to purchase legal service from Rowan and Martin Associates X O The car wash Dina receives
5. The circular flow model The following diagram presents a circular flow model of a simple economy. The outer set of arrovs (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 in the resource markets. resources
Transcribed Image Text:5. The circular flow model The following diagram presents a circular flow model of a simple economy. The outer set of arrovs (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 in the resource markets. resources
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