dAlshehrCustomer Support Sign Out BAC 120-21 Home Grades Personaliced Reviews Di
ID: 1161645 • Letter: D
Question
dAlshehrCustomer Support Sign Out BAC 120-21 Home Grades Personaliced Reviews Discussion Measuring a Nation's Income (Mobile-Enabled) Graded Assignment Read Chapter S Back be Assignment Due Thursday 07 0538 at 08:00 AM Average: Attempts 1. The ecenomy's inceme and expenditure The following diagram presents a dircular iow medel of a simple econemy. The suber set of arvows ( in markets for fectors of preduction Based on this modelt, households earn income when Suppose Ana earns 5675 per week working as a doctor for bhe Medical Cic. She uses $9 to order a mojto cocktall at Lttle Havana. Litte Havana pays Yakov $430 per week to wait tables. Yelkov uses $325 to purchase mecical services from the Medical Clinic Identi?y whether each of the following events in this scenarie ocours in the market for factors of production or the market for goods and services Yakov earns $450 per week working for Lietle Havana. Ana spends $9 to order a mojto cocktail Ana carms $675 per week working for the Medical Cinic which ofuhe eements of this scenario represent a flow from apply household to firm? This cold be a now of dollars, inputs, oroutputs.aeck a" that The $325 Yakov spends to purchase medical services from the Medical Clinic The mogito Ana recelves U Ana's labor True or False: Fer the economy as a whole, expenditures must equal income. &ckam; 153 1/2
Explanation / Answer
Based on the model households earn income when Firms purchase Factors of production (Land, Labor, Capital) in the market for factors of production.
Yakov earns $450 per week working for little Havana - This scenario occurs in Market for factors of production as Yakov sells his labor to earn money.
Ana spends $9 to order a mojito cocktail - This scenario occurs in market for goods and services as Ana buys mojito cocktail in that market with her $9.
Ana earns $675 per week working for the medical clinic - This scenario occurs in market for factors of production as Ana sells her labor to earn money.
A flow from households to firm can be a flow of dollars or, input or output. The $325 yakov spends is a flow of dollars from household (Yakov) to firm (the medical clinic). And, Ana's labor is also a flow from household to firm. But the mojito Ana receives is a flow of good from firm to household.
Answer-option A and C
The statement is true that for the Economy as a whole, expenditure must equal income. Because, all the expenditure in the economy ends up as someone's income
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.