Identify whether each of the following events in this scenario occurs in the fac
ID: 1151459 • Letter: I
Question
Identify whether each of the following events in this scenario occurs in the factor market or the product market.
Event
Factor Market
Product Market
Which of the elements of this scenario represent a flow from a household to a firm? This could be a flow of dollars, inputs, or outputs. Check all that apply.
Frances's labor
The $475 per week Dmitri earns working for Little Havana
The $350 Dmitri spends to purchase software from PC Pros
The mojito Frances receives
Event
Factor Market
Product Market
Dmitri spends $350 to purchase software from PC Pros. Frances earns $625 per week working for PC Pros. Frances spends $8 to order a mojito cocktail.Explanation / Answer
Dmitri is spending $350 in buying a good from a producer so this is a part of goods market (Product Market)
Frances is earning money by rendering services so that it is a part of factor market
Frances is spending money and is buying a good so this is a part of goods market (Product Market)
Frances's labor is a flow from household to firm (select)
Earnings of Dmitri is a flow from firms to households (do not select)
The $350 Dmitri spends is expenditure on goods and services so this s a flow from household to firm (select)
The mojito Frances receives is a flow from firms to households (do not select)
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.