Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 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 markets for factors of production. Suppose Maria earns $800 per week working as a programmer for Maction. She uses $9 to install reflective stickers on her bike at Riley's Off-Road Repair. Riley's Off-Road Repair pays Kevin $375 per week to fix bicycles. Kevin uses $150 to purchase software from Maction. 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 Kevin earns $375 per week working for Riley's Off-Road Repair. Maria earns $800 per week working for Maction. Maria spends $9 to install reflective stickers on her bike. 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 reflective stickers Maria receives

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Democratizing The Economics Debate Pluralism And Research Evaluation

Authors: Carlo D'Ippoliti

1st Edition

1000066169, 9781000066166

More Books

Students also viewed these Economics questions