Suppose Janet earns $675 per week working as a programmer for PC Pros. She uses $8 to get her car washed at Spotless Car Wash. Spotless Car Wash pays Felix $375 per week to wash cars. Felix uses $350 to purchase software from PC Pros.

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

Janet earns $675 per week working for PC Pros.

Felix earns $375 per week working for Spotless Car Wash.

Felix spends $350 to purchase software from PC Pros.

Which of the elements of this scenario represent a flow from a household to a firm? This could be a flow of dollars, inputs, or outputs.Check all that apply.

The $375 per week Felix earns working for Spotless Car Wash

The $350 Felix spends to purchase software from PC Pros

Janet's labor

True or False: For the economy as a whole, expenditures must equal income.

True

False