Question

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. Market for Factors of Market for Goods and Event Production Services Raphael earns $250 per week working for Breanna's Brewing O O Company. Raphael spends $375 to purchase a sleep test from the Medical Clinic. O O Susan eams $675 per week working for the Medical Clinic. O O 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. [_] Susan's labor [ The $250 per week Raphael earns working for Breanna's Brewing Company [_] The $375 Raphael spends to purchase a sleep test from the Medical Clinic True or False: For the economy as a whole, expenditures must equal income. O True ) False 1. The economy''s income and expenditure 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. 'Goods and Services | Marketsfor Factors of Production Based on this model, households earn income when w purchase w in markets for factors of production. Suppose Susan earns $675 per week working as a registered nurse for the Medical Clinic. She uses $2 to have a pint at Breanna's Brewing Company. Breanna's Brewing Company pays Raphael $250 per week to serve as head brewer. Raphael uses $375 to purchase a sleep test from the Medical Clinic. 6. Limitations of GDP Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States? Check all that apply. (] The quality of goods available to consumers (] Expenditures on federal highways [J The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government (] The loss of enjoyment people incur when scenic land is converted to commercial use When a U.5. company purchases and imports electronic parts from China to use to produce smartphones within the United States, this purchase increases the component of GDP while also W net exports by the same amount. Therefore, the Grade It Now Save & Continue purchase of electronic parts from China causes W in US GDP