(Solved): 12. The circular flow model The following diagram presents a circular flow model of a simple econo ...

12. The circular flow model 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. Based on this model, businesses earn revenue when purchase in the product markets. Suppose Ana earns $$\$750$$ per week working as work as a flight attendant for Flyaway Airlines. She uses $$\$10$$ to order a mojito cocktail at Little Havana. Little Havana pays Yakov $$\$375$$ per week to wait tables. Yakov uses $$\$200$$ to purchase air travel to Hawaii from Flyaway Airlines. Identify whether each of the following events in this scenario occurs in the factor markets or the product markets. Which of the elements of this scenario represent a flow from a business to a household? This could be a flow of dollars, inputs, or outputs. Check all that apply. The mojito Ana receives The $$\$200$$ Yakov spends to purchase air travel to Hawaii from Flyaway Airlines The $$\$375$$ per week Yakov earns working for Little Havana The work Ana does for Little Havana