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 | Factors of Production Based on this model, households earn income when W purchase W in factor markets. Suppose Frances earns $825 per week working as an interior designer for Ourhouse. She uses $9 to take a yoga class at Big Bend. Big Bend pays Dmitri $450 per week to instruct yoga. Dmitri uses $175 to purchase furniture from Ourhouse. Identify whether each of the following events in this scenario occurs in the factor market or the product market. | Event Factor Market Product Market | Based on this model, households earn income when W purchase W in factor markets. Suppose Frances earns $825 per week working as an interior designer for Ourhouse. She uses $9 to take a yoga class at Big Bend. Big Bend pays Dmitri $450 per week to instruct yoga. Dmitri uses $175 to purchase furniture from Ourhouse. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market Frances spends $9 to take a yoga class. O O Frances earns $825 per week working for Ourhouse. O O Dmitri spends $175 to purchase furniture from Ourhouse. O O Which of the elements of this scenario represent a flow from a firm to a household? This could be a flow of dollars, inputs, or outputs. Check all that apply. (J Frances's labor (J The $450 per week Dmitri earns working for Big Bend (J The yoga class Frances receives (J The $175 Dmitri spends to purchase furniture from Ourhouse