Question

Hilary earns s900 per week working as a dentist for Tooth's Dental Care Clinic. She uses $300 to draw up a will at Jean and Blanchette Associates. Jean and Blanchette Associates pays Darnell $300 per week to work as a corporate attorney. Darnell uses $400 to purchase dental care services from Tooth's Dental Care Clinic Which of the events in this scenario occur in product markets? Check all that apply Darnell earns $800 per week working for Jean and Blanchette Associates. □ Darnell spends S400 to purchase dental care services from Tooth's Dental Care Clinic. Hilary spends $300 to draw up a will. Hilary earns $900 per week working for Tooth's Dental Care Clinic. Which of the elements in this scenario represent a flow from a househoid to a firm? (Hint: This could be a fiow of money, inputs, or outputs.) Check all that apply. The $800 per week Darnell earns working for Jean and Blanchette Associates The legal service Hilary receives 2) Hilary's labour □ The $400 Darnell spends to purchase dental care services from Tooth's Dental Care Clinic

Answer 1

1.

Correct Answer:

B

C

Darnell and Hillary, are spending to buy goods and services, so these are the examples of product market where the goods and services are being sold.

2.

Correct Answer:

C

D

hillary' labor is flow of labor resource from household to firm. Darnell's spending is flow of money from household to firm.