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 theinner set of arrows (shown in red) shows the corresponding flaow of inputs and outputs.Markets forGoods and ServicesFirmsHouseholdsMarkets forFactors of Productionpurchase laborland capitalBased on this model, households earn income whenfirmsin markets for factors of production.Suppose Deborah earns $575 per week working as a flight attendant for Flyaway labor and capitalHavana pays Carlos $200 per week to wait tables. Carlos uses $225 to purchase goods and services pm Flyaway Airlines.to order a mojito cocktail at Little Havana. LittleIdentify 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 ofProductionMarket for Goods andServicesEvent Suppose Deborah earns $575 per week working as a flight attendant for Flyaway Airlines. She uses $8 to order a mojito cocktail at Little Havana. LittleHavana pays Carlos $200 per week to wait tables. Carlos uses $225 to purchase air travel to Mawaii from Flyaway Airlines.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 ofMarket for Goods andEventProductionServicesCarlos spends $225 to purchase air travel to Hawai from FlyawayAirlines.Carlos earns $200 per week working for Little Havana.Deborah spends $8 to order a mojito cocktail,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 ail thatapply.O The mojito Deborah receivesO The $225 Carlos spends to purchase air travel to Hawai from Flyaway AirlinesO The $200 per week Carlos earns working for Littl HavanaTrue or False: For the economy as a whole, expenditures must equal income.O TrueO False

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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 purchase laborland capital in markets for factors of production.

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 purchase laborland capital in markets for factors of production.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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