Please number the answers and do it in order so it is easier to follow.

1. 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.

Based on this model, households earn income when V purchase V in markets for factors of production. Suppose Janet earns $650 per week working as a programmer for PC Pros. She uses $10 to get her car washed at Spotless Car Wash. Spotless Car Wash pays Felix $350 per week to wash cars. Felix uses $100 to purchase software from PC Pros. Identify whether each of the following events in this scenario occurs in the market for factors of production or the market for goods and services. Event Market for Factors of Production Market for Goods and Services Janet spends $10 to get her car washed. 0 0 Janet earns $650 per week working for PC Pros. Felix earns $350 per week working for Spotless Car Wash. Which of the elements of this scenario represent a flow from a rm to a household? This could be a flow of dollars, inputs, or outputs. Check all that apply. C] Janet's labor C] The car wash Janet receives C] The $350 per week Felix earns working for Spotless Car Wash True or False: For the economy as a whole, expenditures must equal income. 2. Activities included (and not included) in the calculation ofGDP The gross domestic product (GDP) of the United States is defined as the 7 all v V in a given period of time. Based on this denition, indicate which of the following transactions will be included in ( that is, directly increase) the GDP of the United States in 2018. 2018 GDP Scenario Included Excluded Treetopplers, a U.S. lumber company, produces wood at a plant in Oregon on September 13, 2018. It sells the wood to Buildit and Partners, a developer, for use in the production of a new house that will be built in the United States in 2018. (Note: Focus exclusively on whether production of the wood increases GDP directly, and ignore the effect of production of the new house on GDP.) Athleticus, a U.S. shoe company, produces a pair of sneakers at a plant in Vietnam on March 17, 2018. Athleticus imports the pair of sneakers into the United States on May 21, 2018. Awake Cafe, a U.S. coffee company, produces a latte at its location in Minneapolis on January 9, 2018. It sells the latte to a customer immediately. You chop down a cherry tree on your property in California and make a dining room table in 2018. A similar table sells for $800 in a local furniture store. Chocolate Express, a Swiss chocolate company, produces a chocolate bar at a plant in Illinois on December 5, 2018. An elementary school student buys the chocolate bar on December 24. 3. Categories of expenditures Kenji and Lucia Murphy live in Swarthmore, PA. Lucia's father, Paolo, lives in Sweden. For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply. Transaction C I G X M Lucia's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. O O O O O Lucia buys a new BMW, which was assembled in Germany. O O Lucia gets a new video camera made in the United States. O The Federal Aviation Administration expands the runways at Philadelphia International Airport, which is just O O a few miles from Kenji and Lucia's house. Kenji's employer upgrades all of its computer systems using U.S.-made parts. 0 0 0 0 0