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. Markets for Goods and Services Firms Households Markets for Factors of Production Based on this model, households earn income when purchase in factor markets. Suppose Janet earns $850 per week working as a cook for Wingies. She uses $9 to go climbing at Wally's Climbing Wall. Wally's Climbing Wall pays Felix $350 per week to work as a safety instructor. Felix uses $200 to purchase chicken wings from Wingies