Suppose Kyoko earns $625 per week working as a cook for Wingies. She uses $10 to take a spin class at Silver’s Gym. Silver’s Gym pays Jacques $325 per week to work as a trainer. Jacques uses $125 to purchase chicken wings from Wingies.
Identify whether each of the following events in this scenario occurs in the factor market or the product market.
Event
Factor Market
Product Market
Jacques earns $325 per week working for Silver’s Gym.
Kyoko spends $10 to take a spin class.
Jacques spends $125 to purchase chicken wings from Wingies.
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.
Kyoko's labor
The $125 Jacques spends to purchase chicken wings from Wingies
The spin class Kyoko receives
The $325 per week Jacques earns working for Silver’s Gym