Question

Suppose Deborah earns $650 per week working as a programmer for PC Pros. She uses $9 to order a mojito cocktail at Little Havana. Little Havana pays Carlos $350 per week to wait tables. Carlos uses $250 to purchase software from PC Pros.
Identify whether each of the following events in this scenario occurs in the resource market or the product market.A) Carlos spends $175 to purchase software from PC ProsB) Deborah earns $550 per week working for PC ProsC) Deborah spends $9 to order a mojito cocktail

Answer 1

Answer:

A) Carlos spends $175 to purchase software from PC Pros. Product market

B) Deborah earns $550 per week working for PC Pros. Resource market

C) Deborah spends $9 to order a mojito cocktail. Product market

Explanation:

Resource market deals in the transfer of labor, capital, land and entrepreneurship from households to firms

Product market deals in the transfer of goods and services from the firms to households.