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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 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. Based on this model, households earn income when purchase in the resource markets. Suppose Crystal earns $525 per week working as jewelry appraiser for Classy's Jewelry Store. She uses $9 to buy a box of aspirin at Pillmart Pharmacy. Pillmart Pharmacy pays Brian $300 per week to work the cash register. Brian uses $225 to purchase necklace from Classy's Jewelry Store. Identify whether each of the following events in this scenario occurs in the resource markets or the product markets. Event Resource Markets Product Markets Crystal earns $525 per week working for Classy's Jewelry Store. Crystal spends $9 to buy a box of aspirin. Brian earns $300 per week working for Pillmart Pharmacy. 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 aspirin Crystal receives Crystal's labor The $225 Brian spends
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