EC 202 CHP 2 – Flashcards
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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.
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The $425 per week Andrew earns working for Spotless Car Wash
The car wash Beth receives
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Identify whether each of the following events in this scenario occurs in the resource market or the product market.
Andrew earns $425 per week working for Spotless Car Wash.
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Resource Market
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Identify whether each of the following events in this scenario occurs in the resource market or the product market.
Beth earns $675 per week working for PC Pros.
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Resource Market
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Identify whether each of the following events in this scenario occurs in the resource market or the product market.
Beth spends $9 to get her car washed.
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Product Market
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Based on this model, households earn income when _________ purchase ____________.
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Firms
Resources
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An economic model is
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a simplified representation of some aspect of the economy.
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The circular-flow diagram illustrates that, in markets for the factors of production,
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Households are sellers, firms are buyers
