Suppose Janet earns $600 per week working as a doctor for the Medical Clinic. She uses $9 to order a mojito cocktail at Little Havana. Little Havana pays Felix $300 per week to wait tables. Felix uses $175 to purchase medical services from the Medical Clinic. 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.EventMarket for Factors of ProductionMarket for Goods and ServicesJanet spends $9 to order a mojito cocktail. Janet earns $600 per week working for the Medical Clinic. Felix earns $300 per week working for Little Havana. 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. a. The $300 per week Felix earns working for Little Havanab. Janet's laborc. The mojito Janet receives True or False: For the economy as a whole, expenditures must equal income.a. Trueb. False Suppose Janet earns $600 per week working as a doctor for the Medical Clinic. She uses $9 to order a mojito cocktail at Little Havana. Little Havanapays Felix $300 per week to wait tables. Felix uses $175 to purchase medical services from the Medical Clinic.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 ServicesEventJanet spends $9 to order a mojito cocktail.Janet earns $600 per week working for the Medical Clinic.Felix earns $300 per week working for Little Havana.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 thatapply.The $300 per week Felix earns working for Little HavanaJanet's laborThe mojito Janet receivesTrue or False: For the economy as a whole, expenditures must equal income.TrueFalse

Answered: Suppose Janet earns $600 per week…

MACROECONOMICS

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ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

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Suppose Janet earns $600 per week working as a doctor for the Medical Clinic. She uses $9 to order a mojito cocktail at Little Havana. Little Havana pays Felix $300 per week to wait tables. Felix uses $175 to purchase medical services from the Medical Clinic.

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	Market for Factors of Production	Market for Goods and Services
Janet spends $9 to order a mojito cocktail.
Janet earns $600 per week working for the Medical Clinic.
Felix earns $300 per week working for Little Havana.

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.

a. The $300 per week Felix earns working for Little Havana

b. Janet's labor

c. The mojito Janet receives

True or False: For the economy as a whole, expenditures must equal income.

a. True

b. False

Suppose Janet earns $600 per week working as a doctor for the Medical Clinic. She uses $9 to order a mojito cocktail at Little Havana. Little Havana
pays Felix $300 per week to wait tables. Felix uses $175 to purchase medical services from the Medical Clinic.
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
Janet spends $9 to order a mojito cocktail.
Janet earns $600 per week working for the Medical Clinic.
Felix earns $300 per week working for Little Havana.
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.
The $300 per week Felix earns working for Little Havana
Janet's labor
The mojito Janet receives
True or False: For the economy as a whole, expenditures must equal income.
True
False

Expert Solution

Step 1

A simple circular flow model shows the flow of goods and services, money between mainly Firms and Households.

In Market for Factors of Production, the firms buy the factors of production ie land, labor, capital and enterpreneurship and households sell the factors of production in return for rent, wages, interest and profit respectively. This market is also known as Factor Market.

In Market for Goods and Services, the business firms sell goods and services produced by them and households purchase such goods and services.

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