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, firms earn revenue when purchase in product markets. Suppose Kate earns $500 per week working as jewelry appraiser for Classy's Jewelry Store. She uses $9 to buy a box of aspirin at Pillmart Pharmacy. Pillmart Pharmacy pays Hubert $325 per week to work the cash register. Hubert uses $225 to purchase necklace from Classy's Jewelry Store. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market kate spends $9 to buy a box of aspirin. 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, firms earn revenue when purchase in product markets. Suppose Kate earns $500 per week working as Pillmart Pharmacy pays Hubert $325 per week households iser for Classy's Jewelry Store. She uses $9 to buy a box of aspirin at Pillmart Pharmacy. firms sh register. Hubert uses $225 to purchase necklace from Classy's Jewelry Store. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market Kate spends $9 to buy a box of aspirin. 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, firms earn revenue when purchase in product markets. Suppose Kate earns $500 per week working as jewelry appraiser for Classy goods and services uses $9 to buy a box of aspirin at Pillmart Pharmacy. Pillmart Pharmacy pays Hubert $325 per week to work the cash register. H factors rchase necklace from Classy's Jewelry Store. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market kate spends $9 to buy a box of aspirin. Suppose Kate earns $500 per week working as jewelry appraiser for Classy's Jewelry Store. She uses $9 to buy a box of aspirin at Pillmart Pharmacy. Pillmart Pharmacy pays Hubert $325 per week to work the cash register. Hubert uses $225 to purchase necklace from Classy's Jewelry Store. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market kate spends $9 to buy a box of aspirin. Hubert spends $225 to purchase necklace from Classy's Jewelry Store. Kate earns $500 per week working for Classy's Jewelry Store. Which of the elements of this scenario represent a flow from a household to a firm? This could be a flow of dollars, inputs, or outputs. Check all that apply. Kate's labor The aspirin Kate receives The $325 per week Hubert earns working for Pillmart Pharmacy The $225 Hubert spends to purchase necklace from Classy's Jewelry Store