Question

Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market Juanita spends $10 to buy a box of aspirin. Juanita earns $650 per week working for A Plus Accountants. Gilberto spends $250 to purchase tax services from A-Plus Accountants.

Answer 1

Product market is where goods and services are bought and sold and factor market is where factors of priproductare bought and sold.

Junita spends $10 to buy a box of aspirin - product market. This is because a product is purchased by the households for final consumption.

Junita earns $650 per week working for A plus accountants. - factor market as gives her service to the firm for which she recieves payment.

Gilberto spends $250 to purchase tax services from A plus accountants- product market as it is service which is bought by households.

The aspirin Junita receives is an output flow from firms to households.

The $225 per week Gilberto earns working for Pillmart pharmacy is dollar flow from firm to households for the service provided by the households.

Answer 2

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.

Answer 3

Neha's labor

The aspirin Neha receives