Suppose Beth earns $500 per week working as work as a flight attendant for Flyaway Airlines. She
Question:
Suppose Beth earns $500 per week working as work as a flight attendant for Flyaway Airlines. She uses $10 to have breakfast at Dinah's Diner. Dinah's Diner pays Andrew $375 per week to work as a short-order cook. Andrew uses $375 to purchase air travel to Hawaii from Flyaway Airlines.
Identify whether each of the following events in this scenario occurs in the market for factors of production or the market for goods and services.
Event | Market for Factors of Production | Market for Goods and Services | |
---|---|---|---|
Andrew spends $375 to purchase air travel to Hawaii from Flyaway Airlines. | |||
Beth earns $500 per week working for Flyaway Airlines. | |||
Beth spends $10 to have breakfast. |
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.
The $375 Andrew spends to purchase air travel to Hawaii from Flyaway Airlines
Beth's labor
The breakfast Beth receives
True or False: Gross domestic product (GDP) cannot be used to measure the economy’s income.
True
False
The Legal Environment of Business Text and Cases
ISBN: 978-1305967304
10th edition
Authors: Frank B. Cross, Roger LeRoy Miller