e on Feb 6 at 11 PM EST The circularflow model efollowing di

e on Feb 6 at 11 PM EST The circular-flow model efollowing diagram presents er set of arrows (shown in red) shows the corresponding flow of inputs and outputs. a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the Markets for Goods and Services Firms Markets for Factors of Production. Based on this model, households earn income when purchase in resource markets. Suppose Becky earns $600 per week working as a programmer for PC Pros. She uses $9 to bly a box of aspirin at Pilmart Pharmacy. Pilmart Pharmacy pays Alex $425 per week to work the cash register. Alex uses $400 to purchase software from PC Pros identify whether each of the following events in this scenario occurs in the resource market or the product market

Solution

When Firms purchase Factors of production from resource markets.

Alex spends on PC is Product Market

Becky earns $600 by providing factors of production is Resource Market

Becky spends $9 on aspirin is Product mrket.

Becky labour is factor of production provided by household to firm.hence option A is correct response