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Homework (Ch 02) Attempts Keep the Highest / 3 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, households earn income when purchase in factor markets. Suppose Eleanor earns $850 per week working as an analyst for A.Plus Accountants. She uses $10 to get her car washed at Spotless Car Wash Spotless Car Wash pays Darnell $250 per week to wash cars, Darnell uses $150 to purchase tax services from A-Plus Accountants. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market Eleanor earns $850 per week working for A-Plus Accountants. O Darnell spends $150 to purchase tax services from A-Plus Accountants. O Markets for Factors of Production Based on this model, households earn income when purchase in factor markets. Suppose Eleanor earns $850 per week working as an analyst for A-Plus Accountants. She uses $10 to get her car washed at Spotless Car Wash. Spotless Car Wash pays Darnell $250 per week to wash cars. Darnell uses $150 to purchase tax services from A-Plus Accountants. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market Eleanor earns $850 per week working for A-Plus Accountants. O Darnell spends $150 to purchase tax services from A-Plus Accountants. O Eleanor spends $10 to get her car washed. 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 $150 Darnell spends to purchase tax services from A-Plus Accountants The car wash Eleanor receives D Eleanor's labor The $250 per week Darnell earns working for Spotless Car Wash Grade It Now Save & Continue