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 flow of inputs and outputs.FirmsMarkets forGoods and ServicesMarkets forFactors of ProductionBased on this model, firms earn revenue whenEventHouseholdsSuppose Amy earns $675 per week working as an air traffic controller for PlaneRed Airlines. She uses $7 to have dessert at Guilherme's Garden.Guilherme's Garden pays Van $375 per week to curate a wine list. Van uses $150 to purchase a flight from PlaneRed Airlines.purchaseIdentify whether each of the following events in this scenario occurs in the market for factors of production or the market for goods and services.Van spends $150 to purchase a flight from PlaneRed Airlines.Amy spends $7 to have dessert.Amy earns $675 per week working for PlaneRed Airlines.The dessert Amy receivesin markets for goods and services.Market for Factors of Production Market for Goods and ServicesWhich 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 thatapply.Amy's laborThe $375 per week Van earns working for Guilherme's Garden

Households earn income when "firms" purchase their "factors of production : land, labor, capital…

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 Based on this model, firms earn revenue when Event Markets for Factors of Production. Households Suppose Amy earns $675 per week working as an air traffic controller for PlaneRed Airlines. She uses $7 to have dessert at Guilherme's Garden. Guilherme's Garden pays Van $375 per week to curate a wine list. Van uses $150 to purchase a flight from PlaneRed 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. Van spends $150 to purchase a flight from PlaneRed Airlines. Amy spends $7 to have dessert. Amy earns $675 per week working for PlaneRed Airlines. Amy's labor purchase The dessert Amy receives in markets for goods and services. Market for Factors of Production 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. 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 Markets for Goods and Services Based on this model, firms earn revenue when Event Markets for Factors of Production. Households Suppose Amy earns $675 per week working as an air traffic controller for PlaneRed Airlines. She uses $7 to have dessert at Guilherme's Garden. Guilherme's Garden pays Van $375 per week to curate a wine list. Van uses $150 to purchase a flight from PlaneRed 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. Van spends $150 to purchase a flight from PlaneRed Airlines. Amy spends $7 to have dessert. Amy earns $675 per week working for PlaneRed Airlines. Amy's labor purchase The dessert Amy receives in markets for goods and services. Market for Factors of Production 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. O

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter2: Thinking Like An Economist

Section: Chapter Questions

Problem 2CQQ

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