2. The circular-flow model 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 Production Based on this model, households earn income whern purchase in resource markets Suppose Lucia earns $750 per week working as work as a flight attendant for Flyaway Airlines. She uses $10 to have breakfast at Dinah's Diner Dinah's Diner pays Kenji $475 per week to work as a short-order cook. Kenji uses $200 to purchase air travel to Hawaii from Flyaway Airlines