Aaron locked himself out of his house and had to pay $40 to Brianna,who works for Lucky Locksmith,to open his door.Based on this transaction in the economy and using concepts from the circular flow model,which of the following is true?

Question

Quizplus · Accepted Answer

Brianna earned income from supplying her labour services as a locksmith, which is a factor of production in the circular flow model. Aaron acted as a household by consuming Brianna's service in exchange for payment. There is no indication that Aaron supplied goods or services, or earned income from his labor services in this transaction.

Aaron Locked Himself Out of His House and Had to Pay