Homework SourseSuppose Beth earns 500 per week working as work as a flight
Suppose Beth earns $500 per week working as work as a flight attendant for Flyaway Airlines. She uses $10 to have breakfast at Dinah\'s Diner. Dinah\'s Diner pays Andrew $375 per week to work as a short-order cook. Andrew uses $375 to purchase air travel to Hawaii from Flyaway Airlines.
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 firm to a household? This could be a flow of dollars, inputs, or outputs. Check all that apply.
The $375 Andrew spends to purchase air travel to Hawaii from Flyaway Airlines
Beth\'s labor
The breakfast Beth receives
True or False: Gross domestic product (GDP) cannot be used to measure the economy’s income.
True
False
| Event | Market for Factors of Production | Market for Goods and Services | |
|---|---|---|---|
| Andrew spends $375 to purchase air travel to Hawaii from Flyaway Airlines. | |||
| Beth earns $500 per week working for Flyaway Airlines. | |||
| Beth spends $10 to have breakfast. |
Solution
Answer
Event 1 in which Andrew spends $375 is the item of a category of Market for goods and services
Event 2 represents market of factor of production
Event 3 represents market of goods and services
Because Factor of production includes wage,labor, rent and profit.
GDP can\'t be used as economy \'s income is false the reason behind it\'s false hood is for instance it neglects or fails to incorporate many household activities in counting of GDP etc.
