For each of the following activities, identify the flow of goods and services or factors of production as either household-to-firm or firm-to-household.

Yakov earns $8 per hour working at a fast-food restaurant.

Juanita earns a profit of $5,000 from her grocery bus mass.

Ana pays a storekeeper $2 for a quart of yogurt.

Dina spends $100 for a piano lesson.

Question

Alayna Burnett

Business

12 January, 02:31

For each of the following activities, identify the flow of goods and services or factors of production as either household-to-firm or firm-to-household.

Yakov earns $8 per hour working at a fast-food restaurant.

Juanita earns a profit of $5,000 from her grocery bus mass.

Ana pays a storekeeper $2 for a quart of yogurt.

Dina spends $100 for a piano lesson.

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Answers (1)

Know the Answer?

Julissa Hanson · Answer 1

Factors of production, household-to-firm Factors of production, household-to-firm Goods and services, firm-to-household Goods and services, firm-to-household

Explanation:

As per Circular Flow of Income

Households provide firms with factors of production - Land, Labour, Capital, Entrepreneur. They get factor incomes from firms - wages, rent, interest, profit in return. Firms provide households with goods & services, get prices for them in return. Yakov earning 'wage' by working i. e supplying 'labour' services : is flow of factor of production from households to firm. Juanita earning 'profit' by supplying 'entrepreneurship' service : is flow of factor of production from households to firms Ana paying 'price' for good 'yoghurt' : is flow of goods & services from firms to households Dina paying 'price' for service 'piano lesson' : is flow of goods & services from firms to households