1. The economy's income and expenditure 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. Markets for Goods and Services Firms Households Markets for Factors of ProductionBased on this model, households earn income when purchase in markets for factors of production. Suppose Juanita earns $775 per week working as an analyst for A-Plus Accountants. She uses $10 to order a mojito cocktail at Little Havana. Little Havana pays Gilberto $350 per week to wait tables. Gilberto uses $300 to purchase tax services from A-Plus Accountants. 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 Market for Goods and Event Production Services Juanita spends $10 to order a mojito cocktail. O O Gilberto spends $300 to purchase tax services from A-Plus O O Accountants. Gilberto earns $350 per week working for Little Havana. O OWhich 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. O Juanita's labor The $350 per week Gilberto earns working for Little Havana O The $300 Gilberto spends to purchase tax services from A-Plus Accountants True or False: For the economy as a whole, expenditures must equal income. O True O False