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. Firms Markets for Goods and Services Markets for Factors of Production Households Based on this model, households earn income when firms purchase in factor markets. Suppose Latasha earns $675 per week working as a doctor for the Medical Clinic goods and services er car washed at Spotless Car Wash, Spotless Car Wash pays Jake $300 per week to wash cars. Jake uses $350 to purchase m factors e Medical Clinic. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Latasha earns $675 per week working for the Medical Clinic. Jake earns $300 per week working for Spotless Car Wash. Latasha spends $8 to get her car washed. Factor Market Product Market 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 The $300 per week Jake ears working for Spotless Car Wash