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 Production Based on this model, households earn income when purchase in markets for factors of production. Suppose Crystal earns $650 per week working as a doctor for the Medical Clinic. She uses $9 to get her car washed at Spotless Car Wash. Spotless Car Wash pays Brian $350 per week to wash cars. Brian uses $175 to purchase medical services from the Medical Clinic. 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. Market for Factors of Production Market for Goods and Services Event Crystal earns $650 per week working for the Medical Clinic. Brian spends $175 to purchase medical services from the Medical Clinic. Crystal spends $9 to get her car washed.

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 Production Based on this model, households earn income when purchase in markets for factors of production. Suppose Crystal earns $650 per week working as a doctor for the Medical Clinic. She uses $9 to get her car washed at Spotless Car Wash. Spotless Car Wash pays Brian $350 per week to wash cars. Brian uses $175 to purchase medical services from the Medical Clinic. 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. Market for Factors of Production Market for Goods and Services Event Crystal earns $650 per week working for the Medical Clinic. Brian spends $175 to purchase medical services from the Medical Clinic. Crystal spends $9 to get her car washed.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter2: Thinking Like An Economist

Section: Chapter Questions

Problem 1PA

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