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  3. 1 the economys income and expenditure the following diagram presents...

Question: 1 the economys income and expenditure the following diagram presents...

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1. The economys income and expenditure 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, firms earn revenue when Durchase in markets for goods and services. Suppose Maria earns $650 per week working as a doctor for the Medical Clinic. She uses $10 to have breakfast at Dinahs Diner. Dinahs Diner pays Kevin $200 per week to work as a short-order cook. Kevin uses $250 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 Kevin earns $200 per week working for Dinahs Diner. Maria earns $650 per week working for the Medical Clinic. Kevin spends $250 to purchase medical services from the Medical ClinicWhich 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 t apply. O The breakfast Maria receives The $200 per week Kevin earns working for Dinahs Diner The $250 Kevin spends to purchase medical services from the Medical Clinic True or False: Gross domestic product (GDP) measures total expenditures on final goods and services during a given period of time True O False

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