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  3. based on this model firms earn revenue when firmshouseholds purchase...

Question: based on this model firms earn revenue when firmshouseholds purchase...

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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 purchase labor and capital ▼ in markets for goods and services Suppose Deborah earns $650 per week working as a jewelry appraiser for Classys Jewelry Store. She uses $8 to order a mojito cocktail at Little Havana. Little Havana pays Carlos $200 per week to wait tables. Carlos uses $300 to purchase a necklace from Classys Jewelry Store.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 Deborah earns $650 per week working for Classys Jewelry Store Carlos spends $300 to purchase a necklace from Classys Jewelry Store. Deborah spends $8 to order a mojito cocktail. 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. O Deborahs labor The $300 Carlos spends to purchase a necklace from Classys Jewelry Store The mojito Deborah receives True or False: Gross domestic product (GDP) measures total expenditures on final goods and services during a given period of time. True FalseBased on this model, firms earn revenue when *(firms/households) purchase *(labor and capital/goods and services) in markets for goods and services.

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