1. The economy's Income and expenditure The following diagram presents a drcular-flow model of a simple economy. The outer set of arrows (shown in green) shows the now 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 production in markets for goods and services Based on this model, firms earn revenue when fimspurchase labor and capital Homework (Ch 10) suppose Susan earns $575 per week working as an analyst for A-Plus Accountants. She uses sa to order a mojito cocktail at tittle Havene, utle Havana pays Raphael $275 per week to wait tables. Raphael uses $200 to purchase tax services from A-Plus Accountants. dentiry whether each of the folowing events in this scenario occurs in the market for factors of production or the market for goods and services. Market for Goods and Services Market for Factors of Production Event Raphael earns $275 per week working for uttle Havana. Susan eans $675 per week working for A-Plus Accountants. Susan spends $8 to order a mojito cocktall rm? This could be a flow of dollars, inputs, or outputs. Check an that Which of the elements of this scenario represent a flow from a household to a f apply Susan's labor The $200 Raphael spends to purchase tax services from A-Plus Accountants The mojito Susan receives economy is more complicated than the simple one ilustrated in this circular-fiow diagram. True or False: The actual economy is more complicated than the simple one illustrated in this circular-flow diagram. O True O False Grade Iit Now