Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market Frances spends $9 to buy a box of aspirin. Frances earns $825 per week working for PC Pros. Dmitri spends $175 to purchase software from PC Pros. Which of the elements of this scenario represent a flow from a firm to a household? This could be a flow of dollars, inputs, or outputs. Check all that apply.
Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market Frances spends $9 to buy a box of aspirin. Frances earns $825 per week working for PC Pros. Dmitri spends $175 to purchase software from PC Pros. Which of the elements of this scenario represent a flow from a firm to a household? This could be a flow of dollars, inputs, or outputs. Check all that apply.
Chapter6: Business Expenses
Section: Chapter Questions
Problem 71IIP
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Question
Suppose Frances earns $825 per week working as a programmer for PC Pros. She uses $9 to buy a box of aspirin at Pillmart Pharmacy. Pillmart Pharmacy pays Dmitri $450 per week to work the cash register. Dmitri uses $175 to purchase software from PC Pros.
Identify whether each of the following events in this scenario occurs in the factor market or the product market.
Event
|
Factor Market
|
Product Market
|
|
---|---|---|---|
Frances spends $9 to buy a box of aspirin. |
|
|
|
Frances earns $825 per week working for PC Pros. |
|
|
|
Dmitri spends $175 to purchase software from PC Pros. |
|
|
Which of the elements of this scenario represent a flow from a firm to a household? This could be a flow of dollars, inputs, or outputs. Check all that apply.
a. Frances's labor
b. The $450 per week Dmitri earns working for Pillmart Pharmacy
c. The aspirin Frances receives
d. The $175 Dmitri spends to purchase software from PC Pros
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