2. The circular-flow 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. Marketsfor Factors of Produdion Based on this model, households earn income when 7 purchase 7 in factor markets. Suppose Rosa earns $625 per week working as a pilot for Wingies. She uses $9 to go climbing at Wally's Climbing Wall. Wally's Climbing Wall pays Nick $250 per week to work as a safety instructor. Nick uses $175 to purchase international ights from Wingies. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market Nick earns $250 per week working for Wally's Climbing Wall. Rosa earns $625 per week working for Wingies. Rosa spends $9 to go climbing. 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 $175 Nick spends to purchase international flights from Wingies Rosa's labor The $250 per week Nick earns working for Wally's Climbing Wall The climbing session Rosa receives