(Solved): The following diagram presents a circular-flow model of a simple economy. The outer set of arrows ...

The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Firms Markets for Goods and Services Markets for Factors of Production Households Based on this model, households earn income when markets for factors of production. Suppose Ana earns $750 per week working as a doctor for the Medical Clinic. She uses $10 to have breakfast at Dinah's Diner. Dinah's Diner pays Yakov $375 per week to work as a short-order cook. Yakov uses $200 to purchase medical services from the Medical Clinic. Event Yakov spends $200 to purchase medical services from the Medical Clinic. 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. Yakov earns $375 per week working for Dinah's Diner. purchase Ana earns $750 per week working for the Medical Clinic. True False Market for Factors of Production in Market for Goods and Services 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. Ana's labor The $375 per week Yakov earns working for Dinah's Diner The $200 Yakov spends to purchase medical services from the Medical Clinic True or False: The actual economy is more complicated than the simple one illustrated in this circular-flow diagram.