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 blue) shows the corresponding flow of inputs and outputs. (Note: The market for outputs, also known as the product market, is any market where firms' products are bought and sold. The market for inputs, also known as the factor market, is any market where factors of production are bought and sold.) Markets for Expenditures Outputs Sales receipts Goods and services Goods and services Households Businesses Labor, capital, etc. Labor, capital, etc. Incomes Markets for Wages, interest, etc. Inputs Based on this model, households earn income when purchase in the factor markets. Suppose Hilary earns $625 per week working as a corporate attorney for Rowan and Martin Associates. She uses $10 to get her car washed at Spotless Car Wash. Spotless Car Wash pays Edison $275 per week to wash cars. Edison uses $100 to purchase legal service from Rowan and Martin Associates. Identify whether each of the following events in this scenario occurs in the factor markets or the product markets. Event Factor Markets Product Markets Hilary spends $10 to get her car washed. O O Hilary earns $625 per week working for Rowan and Martin Associates. O O Edison spends $100 to purchase legal service from Rowan and Martin Associates. O O Which of the elements of this scenario represent a flow from a household to a business? This could be a flow of dollars, inputs, or outputs. Check all that apply. The car wash Hilary receives O Hilary's labor The $100 Edison spends to purchase legal service from Rowan and Martin Associates