Question
Suppose Lucia earns $550 per week working as work as a flight attendant for Flyaway Airlines. She uses $8 to buy a box of aspirin
Suppose Lucia earns $550 per week working as work as a flight attendant for Flyaway Airlines. She uses $8 to buy a box of aspirin at Pillmart Pharmacy. Pillmart Pharmacy pays Kenji $200 per week to work the cash register. Kenji uses $200 to purchase air travel to Hawaii from Flyaway Airlines.
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 | |
---|---|---|---|
Lucia spends $8 to buy a box of aspirin. | |||
Kenji earns $200 per week working for Pillmart Pharmacy. | |||
Kenji spends $200 to purchase air travel to Hawaii from Flyaway Airlines. |
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.Select all that apply (a,b,c and d).
a) Lucia's labour
b) The $200 Kenji spends to purchase air travel to Hawaii from Flyaway Airlines
c) The $200 per week Kenji earns working for Pillmart Pharmacy
d) The aspirin Lucia receives
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