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 ProductionBased on this model, households earn income when v purchase V in factor markets. Suppose Valerie earns $625 per week working as a doctor for the Medical Clinic. She uses $10 to have breakfast at Dinah's Diner. Dinah's Diner pays Shen $300 per week to work as a short-order cook. Shen uses $225 to purchase medical services from the Medical Clinic. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market Shen earns $300 per week working for Dinah's Diner. Shen spends $225 to purchase medical services from the Medical Clinic. Valerie earns $625 per week working for the Medical Clinic. Which of the elements of this scenario represent a flow from a rm to a household? This could be a flow of dollars, inputs, or outputs. Check all that apply. '7' Valerie's labor ' The breakfast Valerie receives ' The $225 Shen spends to purchase medical services from the Medical Clinic '7' The $300 per week shen earns working for Dinah's Diner