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 Crystal earns $625 per week working as jewelry appraiser for Classy's Jewelry Store. She uses $8 to get her car washed at Spotless Car Wash. Spotless Car Wash pays Brian $325 per week to wash cars. Brian uses $125 to purchase necklace from Classy's Jewelry Store. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market Crystal spends $8 to get her car washed. Brian spends $125 to purchase necklace from Classy's Jewelry Store. Crystal earns $625 per week working for Classy's Jewelry Store. 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. O The car wash Crystal receives O The $125 Brian spends to purchase necklace from Classy's Jewelry Store O Crystal's labor O The $325 per week Brian earns working for Spotless Car Wash

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 Crystal earns $625 per week working as jewelry appraiser for Classy's Jewelry Store. She uses $8 to get her car washed at Spotless Car Wash. Spotless Car Wash pays Brian $325 per week to wash cars. Brian uses $125 to purchase necklace from Classy's Jewelry Store. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market Crystal spends $8 to get her car washed. Brian spends $125 to purchase necklace from Classy's Jewelry Store. Crystal earns $625 per week working for Classy's Jewelry Store. 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. O The car wash Crystal receives O The $125 Brian spends to purchase necklace from Classy's Jewelry Store O Crystal's labor O The $325 per week Brian earns working for Spotless Car Wash

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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