Question

help me with these 3 problems please

Markets for Goods and Services Firms Households Markets for Factors of Production Based on this model, firms earn revenue when purchase in product markets. Suppose Ginny earns $575 per week working as a doctor for the Medical Clinic. She uses $8 to have breakfast at Dinah's Diner. Dinah's Diner pays Eric $275 per week to work as a short-order cook. Eric uses $125 to purchase medical services from the Medical Clinic

Answer 1

A two sector circular flow consists of firms and households. The households supply factor services to the firms. Thus factor services flow from households to the firms through the factor market. For factor services the households receive factor income. This income is used by the household to purchase goods and services from the firms. Thus the firms receive income when the households purchase goods and services from the product market. Based on this model, firms carn revenue when houschold purchase goods and services in the product market. Factor Market Product Market Event Ginny spends $8 to have breakfast Eric spends $125 to purchase medical services from the Medical Clinic Ginny earns $575 per week working for the Medical Clinic Ginny's labour (labour service flow from household to the firms. The $125 Eric spends to purchase medical services from the Medical Clinic.(Money flows from household to firms). Point Incfficicnt Efficient Unattainable A в с D Any point inside the PPF is inefficient level of production because the nation is not fully utilizing its available resources. The point outside the PPF is not attainable because the resources are insufficient to produce that level of output. Any point along the PPF is efficient and attainable. If technological advancement occurs in the production of industrial robot, the country will be able to produce more industrial robots. The PPF will shift outward in case of industrial robots. 180 120- Industrial robots(thousands) 9012 0 70 140 210 Alfalfa millions of bushels) 280