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  3. 2 the circularflow model the following diagram presents a circularflow...

Question: 2 the circularflow model the following diagram presents a circularflow...

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2. The circular-flow model 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 Markets for Factors of Production Based on this model, households earn income when purchase in factor markets Suppose Kyoko earns $650 per week working as a doctor for the Medical Clinic. She uses $9 to have breakfast at Dinahs Diner. Dinahs Diner pays acques $350 per week to work as a short-order cook. Jacques uses $100 to purchase medical services from the Medical clinic Identify whether each of the following events in this scenario occurs in the factor market or the product market Factor Market Product Market Event Kyoko earns $650 per week working for the Medical Clinic Kyoko spends $9 to have breakfast Jacques spends $100 to purchase medical services from the Medical Clinic. Which of the elements of this scenario represent a flow from a household to a firm? This could be a flow of doillars, inputs, or outputs. Check al that apply The $350 per week Jacques earns working for Dinahs Diner The $100 Jacques spends to purchase medical services from the Medical Oinic The breakfast Kyoko receives
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