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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
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