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 Based on this model, households earn income when Event Markets for Goods and Services Markets for Factors of Production Households Suppose Teresa earns $675 per week working as an installation technician for Stephon's Satellite Service. She uses $8 to install reflective stickers on her bike at Riley's Off-Road Repair. Riley's Off-Road Repair pays Sam $500 per week to fix bicycles. Sam uses $325 to purchase satellite tv from Stephon's Satellite Service. 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 O O O Sam earns $500 per week working for Riley's Off-Road Repair. Teresa spends $8 to install reflective stickers on her bike. Sam spends $325 to purchase satellite tv from Stephon's Satellite Service. purchase O True False The $325 Sam spends to purchase satellite tv from Stephon's Satellite Service The $500 per week Sam earns working for Riley's Off-Road Repair Teresa's labor in markets for factors of production. 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. True or False: Gross domestic product (GDP) cannot be used to measure the economy's income. O
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 Based on this model, households earn income when Event Markets for Goods and Services Markets for Factors of Production Households Suppose Teresa earns $675 per week working as an installation technician for Stephon's Satellite Service. She uses $8 to install reflective stickers on her bike at Riley's Off-Road Repair. Riley's Off-Road Repair pays Sam $500 per week to fix bicycles. Sam uses $325 to purchase satellite tv from Stephon's Satellite Service. 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 O O O Sam earns $500 per week working for Riley's Off-Road Repair. Teresa spends $8 to install reflective stickers on her bike. Sam spends $325 to purchase satellite tv from Stephon's Satellite Service. purchase O True False The $325 Sam spends to purchase satellite tv from Stephon's Satellite Service The $500 per week Sam earns working for Riley's Off-Road Repair Teresa's labor in markets for factors of production. 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. True or False: Gross domestic product (GDP) cannot be used to measure the economy's income. O
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Please answer everything in the photo.
Transcribed Image Text: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
Based on this model, households earn income when
Markets for
Goods and Services
Markets for
Factors of Production
Households
Suppose Teresa earns $675 per week working as an installation technician for Stephon's Satellite Service. She uses $8 to install reflective stickers on
her bike at Riley's Off-Road Repair. Riley's Off-Road Repair pays Sam $500 per week to fix bicycles. Sam uses $325 to purchase satellite tv from
Stephon's Satellite Service.
Event
Sam earns $500 per week working for Riley's Off-Road Repair.
Teresa spends $8 to install reflective stickers on her bike.
Sam spends $325 to purchase satellite tv from Stephon's Satellite
Service.
Teresa's labor
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
O
O
O
O
purchase
O True
The $325 Sam spends to purchase satellite tv from Stephon's Satellite Service
The $500 per week Sam earns working for Riley's Off-Road Repair
O False
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.
in markets for factors of production.
True or False: Gross domestic product (GDP) cannot be used to measure the economy's income.
O
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 6 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.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