Based on this model, households earn income whenfirms purchasegoods and services in markets for factors of production.

Suppose Valerie earns $$675$ per week working as an air traffic controller for PlaneRed Airlines. She uses $$8$ to have a pint at Breanna$$s Brewing Company. Breanna$$s Brewing Company pays Shen $$500$ per week to serve as head brewer. Shen uses $$375$ to purchase a flight from PlaneRed Airlines.