. The economy's income and expenditure The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Based on this model, households earn income when purchase in markets for factors of production. Suppose Ginny earns $700 per week working as a roofer for Chloe’s Construction. She uses $8 to have a pint at Breanna’s Brewing Company. Breanna’s Brewing Company pays Eric $500 per week to serve as head brewer. Eric uses $150 to purchase roofing supplies from Chloe’s Construction. 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 Ginny spends $8 to have a pint. Eric spends $150 to purchase roofing supplies from Chloe’s Construction. Eric earns $500 per week working for Breanna’s Brewing Company. Which of the elements of this scenario represent a flow from a firm to a household? This could be a flow of dollars, inputs, or outputs. Check all that apply. The $150 Eric spends to purchase roofing supplies from Chloe’s Construction Ginny's labor The beer Ginny receives True or False: For the economy as a whole, expenditures must equal income. True False