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.
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
