Suppose Susan earns $700 per week working as a programmer for Maction. She uses $8 to buy shampoo at Christian’s Corner Store. Christian’s Corner Store pays Raphael $400 per week to stock shelves. Raphael uses $250 to purchase software from Maction. 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 Susan spends $8 to buy shampoo. Raphael earns $400 per week working for Christian’s Corner Store. Raphael spends $250 to purchase software from Maction. 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 $400 per week Raphael earns working for Christian’s Corner Store The $250 Raphael spends to purchase software from Maction Susan's labor True or False: Gross domestic product (GDP) measures total expenditures on final goods and services during a given period of time. True False
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Step 1: - Susan spending $8 to buy shampoo occurs in the market for goods and services. Show more…
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