י 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 Teresa earns $675 per week working as a registered nurse for the Medical Clinic. She uses $8 to have dessert at Guilherme's Garden. Guilherme's Garden pays Sam $500 per week to curate a wine list. Sam uses $150 to purchase a sleep test 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 Event Sam spends $150 to purchase a sleep test from the Medical Clinic. Teresa spends $8 to have dessert. Teresa earns $675 per week working for the Medical Clinic. O Market for Goods and Services 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 $500 per week Sam earns working for Guilherme's Garden The dessert Teresa receives Teresa's labor True or False: For the economy as a whole, expenditures must equal income. True False
י 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 Teresa earns $675 per week working as a registered nurse for the Medical Clinic. She uses $8 to have dessert at Guilherme's Garden. Guilherme's Garden pays Sam $500 per week to curate a wine list. Sam uses $150 to purchase a sleep test 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 Event Sam spends $150 to purchase a sleep test from the Medical Clinic. Teresa spends $8 to have dessert. Teresa earns $675 per week working for the Medical Clinic. O Market for Goods and Services 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 $500 per week Sam earns working for Guilherme's Garden The dessert Teresa receives Teresa's labor True or False: For the economy as a whole, expenditures must equal income. True False
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:י
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 Teresa earns $675 per week working as a registered nurse for the Medical Clinic. She uses $8 to have dessert at Guilherme's Garden.
Guilherme's Garden pays Sam $500 per week to curate a wine list. Sam uses $150 to purchase a sleep test 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
Event
Sam spends $150 to purchase a sleep test from the Medical Clinic.
Teresa spends $8 to have dessert.
Teresa earns $675 per week working for the Medical Clinic.
O
Market for Goods and Services
Transcribed Image Text: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 $500 per week Sam earns working for Guilherme's Garden
The dessert Teresa receives
Teresa's labor
True or False: For the economy as a whole, expenditures must equal income.
True
False
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education