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2. The circula r-flollllr model The following diagram presents a circular-ow model of a simple economy. The outer set of arrows (shown in green) shows
2. The circula r-flollllr model 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 ' purchase ' in factor markets. Suppose Susan earns $600 per week working as work as a ight attendant for Flyaway Airlines. She uses $10 to get her car washed at Spotless Car Wash. Spotless Car Wash pays Raphael $225 per week to wash cars. Raphael uses $275 to purchase air travel to Hawaii from Flyaway Airlines. Identify whether each of the following events in thls scenario occurs in the factor market or the product market. Event Susan spends $10 to get her car washed. Susan earns $600 per week working for Flyaway Airlines. Raphael earns $225 per week working for Spotless Car Wash. Which of the elements of this scenario represent a flow from a rm to a household? This could be a ow of dollars, inputs, or outputs. Check all that apply. The $225 Raphael spends to purchase air travel to Hawaii from Flyaway Airlines The car wash Susan receives Susan's labor The $225 per week Raphael earns working for Spotless lCar Wash
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