Based on this model, households earn income when    purchase    in factor markets.   Suppose Maria earns $775 per week working as a doctor for the Medical Clinic. She uses $8 to have breakfast at Dinah's Diner. Dinah's Diner pays Kevin $475 per week to work as a short-order cook. Kevin uses $250 to purchase medical services from the Medical Clinic. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market Kevin spends $250 to purchase medical services from the Medical Clinic.       Maria spends $8 to have breakfast.       Kevin earns $475 per week working for Dinah's Diner.         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. Maria's labor   The breakfast Maria receives   The $250 Kevin spends to purchase medical services from the Medical Clinic   The $475 per week Kevin earns working for Dinah's Diner

Robots at Kroger, Walmart, and Whole Foods The grocery industry is stepping up its investment in robot technology. Retailers are spending an estimated $3.6 billion in robot technology globally, and are expected to invest $12 billion by 2023. Source: Forbes, July 29, 2019 Explain how the widespread use of farm robots will change the rental rate of farm land. www. Q Search Most likely, the widespread use of retailers' robots will OA. decrease the value of marginal product of mall land will decrease OB. not change, the prices of the retail goods will not change OC. increase, the quantity of land used for malls will decrease OD. not change; the quantity of land used for malls will increase the rental rate of mall land because Next

3. The meaning of saving and investment Classify each of the following scenarios listed in the table below using the macroeconomic definitions of saving and investment. Saving Investment Becky purchases new mixers for her commercial bakery. Alex purchases a certificate of deposit at his bank. Eileen purchases shares of stock in Bayzer, a pharmaceutical company. Clancy purchases a new townhouse in Hartford.

(From last year’s final exam) Using an Edgeworth box, draw the following scenario. Amanda and Genevieve are in a 2-person closed economy where they only consume 2 goods: cheese and oranges. Amanda initially has 10 circles of cheese and 2 oranges and Genevieve initially has 12 oranges and 1 circle of cheese. Genevieve is tired of oranges and would like more cheese. Likewise, Amanda has eaten too much cheese in the past and would prefer more oranges. Assume that they engage in a series of trades and in the end settle on the following deal: Amanda gives Genevieve 4 circles of cheese in exchange for 6 oranges. Make sure to indicate on your graph: i. all of the axes, ii. indifference curves at the initial endowment (assume usual, well-behaved, convex indifference curves), iii. and indifference curves at the final bundle that emerged as an equilibrium through trade.