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.Markets forGoods and ServicesFirmsHouseholdsMarkets forFactors of Productionpurchasein factor markets.Based on this model, households earn income whenSuppose Alyssa earns $550 per week working as work as a flight attendant for Flyaway Airlines. She uses $9 to get her car washed at Spotless CarWash. Spotless Car Wash pays Tim $350 per week to wash cars. Tim uses $250 to purchase air travel to Hawaii from Flyaway Airlines.Identify whether each of the following events in this scenario occurs in the factor market or the product market.Factor MarketProduct MarketEventAlyssa spends $9 to get her car washed.Tim spends $250 to purchase air travel to Hawaii from Flyaway Airlines.Ourca narns $550 ner week working for Flyaway Airlines. Factors of ProductionBased on this model, households earn income whenpurchasein factor markets.Suppose Alyssa earns $550 per week working as work as a flight attendant for Flyaway Airlines. She uses $9 to get her car washed at Spotless CarWash. Spotless Car Wash pays Tim $350 per week to wash cars. Tim uses $250 to purchase air travel to Hawaii from Flyaway Airlines.Identify whether each of the following events in this scenario occurs in the factor market or the product market.EventFactor MarketProduct MarketAlyssa spends $9 to get her car washed.Tim spends $250 to purchase air travel to Hawaii from Flyaway Airlines.Alyssa earns $550 per week working for Flyaway Airlines.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 thatapply.O The $250 Tim spends to purchase air travel to Hawaii from Flyaway AirlinesU The $350 per week Tim earns working for Spotless Car WashAlyssa's laborThe car wash Alyssa receives

Households earn income when Firms purchase Labor (factors of production) in factor market.

Based on this model, households earn income when purchase in factor markets. Suppose Alyssa earns $550 per week working as work as a flight attendant for Flyaway Airlines. She uses $9 to get her car washed at Spotless Car Wash. Spotless Car Wash pays Tim $350 per week to wash cars. Tim uses $250 to purchase air travel to Hawaii from Flyaway Airlines. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market Alyssa spends $9 to get her car washed. Tim spends $250 to purchase air travel to Hawaii from Flyaway Airlines. for Elvaway Airlines

Based on this model, households earn income when purchase in factor markets. Suppose Alyssa earns $550 per week working as work as a flight attendant for Flyaway Airlines. She uses $9 to get her car washed at Spotless Car Wash. Spotless Car Wash pays Tim $350 per week to wash cars. Tim uses $250 to purchase air travel to Hawaii from Flyaway Airlines. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market Alyssa spends $9 to get her car washed. Tim spends $250 to purchase air travel to Hawaii from Flyaway Airlines. for Elvaway Airlines

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

Problem 6SCQ: Would an op-ed piece in a newspaper urging the adoption of a particular economic policy be a...

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