View the following YouTube video to gain an understanding of the circular flow model. https://www.youtube.com/watch?v=V5_IOkWqlfY Answer the following based on the video and textbook material.

1. Identify whether each of the following transactions takes place in the factor market or the product market. a. Billy buys a sofa from Home Time Furniture for his new home. 

i. Product Market 

b. Home Time Furniture pays its manager her weekly salary. i. Factor Market 

c. The manager buys dinner at Billy's Caf. i. Product Market 

d. People purchase financial capital, like stocks, bonds, and bank deposits. i. Factor Market 

2. Why does the circular flow of money move in the opposite direction from the flow of goods and services? a. 

3. What is bought and sold in factor markets? 4. What is bought and sold in product markets

Answer rating: 100% (QA)

1a Product Market b Factor Market c Product Market d Factor Market Th... View the full answer