EC 202 CHP 2

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.

The $425 per week Andrew earns working for Spotless Car Wash The car wash Beth receives

Identify whether each of the following events in this scenario occurs in the resource market or the product market.
Andrew earns $425 per week working for Spotless Car Wash.

Resource Market

Identify whether each of the following events in this scenario occurs in the resource market or the product market.
Beth earns $675 per week working for PC Pros.

Resource Market

Identify whether each of the following events in this scenario occurs in the resource market or the product market.
Beth spends $9 to get her car washed.

Product Market

Based on this model, households earn income when _________ purchase ____________.

Firms Resources

An economic model is

a simplified representation of some aspect of the economy.

The circular-flow diagram illustrates that, in markets for the factors of production,

Households are sellers, firms are buyers