1. The economy's income and expenditure The following diagram presents a circular-ow model of a simple economy. The outer set of arrows (shown in green) shows the ow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Based on this model, households earn income when V purchase V in markets for factors of production. Suppose Beth earns $625 per week working as a jewelry appraiser for Classy's Jewelry Store. She uses $10 to get her car washed at Spotless Car Wash. Spotless Car Wash pays Andrew $375 per week to wash cars. Andrew uses $400 to purchase a necklace from Classy's Jewelry Store. Identify whether each of the following events in this scenario occurs in the market for factors ofproduction or the market for goods and services. Event Market for Factors of Production Market for Goods and Services Beth spends $10 to get her car washed. 0 O Andrew earns $375 per week working for Spotless Car Wash. 0 0 Beth earns $625 per week working for Classy's Jewelry Store. 0 O which of the elements of this scenario represent a ow from a rm to a household? This could be a flow of dollars, inputs, or outputs. Check all that apply. El The $375 per week Andrew earns working for Spotless Car Wash Cl The car wash Beth receives Cl Beth's labor True or False: Gross domestic product (GDP) measures total expenditures on nal goods and services during a given period of time. 0 True