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, households earn income whenHouseholdspurchasein factor markets.firmsSuppose Lucia earns $900 per week working as an inr for Ourhouse. She uses $8 to go climbing at Wally's Climbing Wall. Wally'sClimbing Wall pays Kenji $350 per week to work as households ctor. Kenji uses $400 to purchase furniture from Ourhouse.EventLucia spends $8 to go climbing.Kenji spends $400 to purchase furniture from Ourhouse.Identify whether each of the following events in this scenario occurs in the factor market or the product market.Factor Market Product Market

A fundamental model for illustrating how an economy works in economics is the circular flow diagram.…

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 Event Suppose Lucia earns $900 per week working as an in Climbing Wall pays Kenji $350 per week to work as Households firms households purchase in factor markets. r for Ourhouse. She uses $8 to go climbing at Wally's Climbing Wall. Wally's tor. Kenji uses $400 to purchase furniture from Ourhouse. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Factor Market Product Market

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 Event Suppose Lucia earns $900 per week working as an in Climbing Wall pays Kenji $350 per week to work as Households firms households purchase in factor markets. r for Ourhouse. She uses $8 to go climbing at Wally's Climbing Wall. Wally's tor. Kenji uses $400 to purchase furniture from Ourhouse. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Factor Market Product Market

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Illustrate using the circular flow model how resources are utilized by household and the business sector
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