Question

Suppose Rina earns $550 per week working as a doctor for the Medical Clinic. She uses $9 to buy a box of aspirin at Pillmart Pharmacy. Pillmart Pharmacy pays Musashi $500 per week to work the cash register. Musashi uses $225 to purchase medical services from the Medical Clinic.Identify whether each of the following events in this scenario occurs in the resource market or the product market.Event - Resource Market - /Product Market1. Cho spends $10 to buy a box of aspirin. 2. Bob spends $225 to purchase medical services from the Medical Clinic. 3. Cho earns $600 per week working for the Medical Clinic. 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.a. The $225 per week Bob earns working for Pillmart Pharmacyb. The $225 Bob spends to purchase medical services from the Medical Clinicc. The aspirin Cho receivesd. Cho's labor

Answer 1

Answer:

Identify whether each of the following events in this scenario occurs in the resource market or the product market.Event - Resource Market - /Product Market

1. Cho spends $10 to buy a box of aspirin.

Purchase of goods In the product market. Cho(families)  purchase from a Firm

2. Bob spends $225 to purchase medical services from the Medical Clinic.

Purchase of services In the product market. Bob(families)  purchase from a Firm

3. Cho earns $600 per week working for the Medical Clinic

Resource market. Families offer their labor to firm in exchange of cash

Inflow from a firm into households:

a. The $225 per week Bob earns working for Pillmart Pharmacy

c. The aspirin Cho receives The firm provide with output

Explanation:

A flow of goods or dollars from the firm (Medical Clinic) into the household:

would be either the services and good the clinic offers or the amount paid to the household for rent, wages and interest in return of the factor of production