(Solved): 2. The circular-flow model The follonise dagram presents a circular-flow model of a simple economg. ...

2. The circular-flow model The follonise dagram presents a circular-flow model of a simple economg. The outer set of artows (shown in ereen) shows the flow of dollars, and the inner set of arroms (shown in red) shows the corresponding flow of inputs and outputs. Based on this model, households earn income when purchase. In factor markets. Suppose Wette earns $\$600$ per weck working as a software engineer for Casement. She uses $\$10$ to taka a spin class at Silver's Gym. Siver's Gym pays Sean $\$425$ per week to work as a trainer. 5 ean uses $\$100$ to purchase software trom Casement. Identify whether each of the following events in this scenario occuirs in the factor market or the product markwt. Based on this model, households earn income when purchase in factor makets. pays Sean $\$425$ per week ta work as a trainer, Sean uses $\$100$ to pur chase sentrara froma Casement. Which of the elements of this scenario represent a flow from a firm to a houscheld? This could be a flow of dollars, inputs, or outputs. Check aif that anply. Yrette's labor The $\$100$ sean spends to purchase softwate from Casenient The $\$425$ per week Sean earns working for Slver's Ovm The spia dass ruette recelves.