Question

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. Dina's labor the car wash dina receives the $300 per week charles earns working for spotless car wash the $200 charles spends to purchase air travel to hawaii from flyaway airlines?

Answer 1

Answer: Dina's labor the car wash dina receives the $300 per week and charles earns working for spotless car wash

Explanation: The flow from a firm to a household can be in the form of goods and services purchased by the household or in the form of flow of factor income to the household. Out of the given options, Dina's labor in the car wash and Charles earning from spotless car wash represent a flow of income from the firm to the households. While, Charles spending on airline tickets represent a flow from the household to the firm in the form of expenditure for buying a service. So, a and b are correct.