Suppose Maria earns $550 per week working as a corporate attorney for Rowan and Martin Associates. She uses $9 to buy a box of aspirin at Pillmart Pharmacy. Pillmart Pharmacy pays Kevin $350 per week to work the cash register. Kevin uses $250 to purchase legal service from Rowan and Martin Associates. Identify whether each of the following events in this scenario occurs in the factor market or the product market.
Event Factor Market Product Market
A. Maria earns $825 per week working for Rowan and Martin Associates.
B. Edison spends $325 to purchase legal service from Rowan and Martin Associates
C. Maria spends $9 to buy box of aspirin.
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.
A. Hilary's labor.
B. The $325 Edison spends to purchase legal service from Rowan and Martin Associates.
C. The aspirin Hilary receives.
D. The $350 per week Edison earns working for Pillmart Pharmacy.