Measuring a Nation’s Income (Mobile-Enabled) Graded Assignment | Read Chapter 5
ID: 1161689 • Letter: M
Question
Measuring a Nation’s Income (Mobile-Enabled)
Graded Assignment | Read Chapter 5 | Back to Assignment
Due Thursday 07.05.18 at 08:00 AM
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1. The economy's 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.
Based on this model, households earn income whenhouseholds purchasegoods and services in markets for factors of production.
Suppose Ana earns $675 per week working as a doctor for the Medical Clinic. She uses $9 to order a mojito cocktail at Little Havana. Little Havana pays Yakov $450 per week to wait tables. Yakov uses $325 to purchase medical services from the Medical Clinic.
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.
Event
Market for Factors of Production
Market for Goods and Services
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.
The $325 Yakov spends to purchase medical services from the Medical Clinic
The mojito Ana receives
Ana's labor
True or False: For the economy as a whole, expenditures must equal income.
True
False
1. The economy's 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.
Based on this model, households earn income whenhouseholds purchasegoods and services in markets for factors of production.
Suppose Ana earns $675 per week working as a doctor for the Medical Clinic. She uses $9 to order a mojito cocktail at Little Havana. Little Havana pays Yakov $450 per week to wait tables. Yakov uses $325 to purchase medical services from the Medical Clinic.
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.
Event
Market for Factors of Production
Market for Goods and Services
Yakov earns $450 per week working for Little Havana. Ana spends $9 to order a mojito cocktail. Ana earns $675 per week working for 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 dollars, inputs, or outputs. Check all that apply.
The $325 Yakov spends to purchase medical services from the Medical Clinic
The mojito Ana receives
Ana's labor
True or False: For the economy as a whole, expenditures must equal income.
True
False
Markets for Goods and Services Firms Households Markets for Factors of ProductionExplanation / Answer
Yakov earns $450 per week working for Little Havana- Market for factors of production
Ana spends $9 to order a mojito cocktail- Market for goods and service
Ana earns $675 per week working for the medical Clinic- Market for factors of production
The $325 Yakov spends to purchase medical clinic- Flow of dollar
The Mojito Ana receive- Flow of output
Ana's labor- Flow of input
For the economy as a whole, expenditures must equal income- TRUE.