Asked by Connor Bowen on Jul 21, 2024
Verified
Businesses buy resources used to produce goods and services in the:
A) factor market.
B) product market.
C) market for goods and services.
D) foreign exchange market.
Factor Market
This refers to markets where services of the factors of production (not the actual products) such as labor, capital, and land are bought and sold.
Resources
Inputs used in the production of goods and services, including labor, capital, land, and technology.
Goods and Services
The tangible and intangible outputs of an economy that satisfy consumer needs and wants.
- Detail the variances between factor markets and product markets in the circular flow of economic activity.
Verified Answer
BR
Brian RatemoJul 25, 2024
Final Answer :
A
Explanation :
Businesses buy resources (such as labor, raw materials, and capital) in the factor market to produce goods and services. The product market is where finished goods and services are sold to consumers. The market for goods and services and the foreign exchange market do not necessarily involve the purchase of resources for production.
Learning Objectives
- Detail the variances between factor markets and product markets in the circular flow of economic activity.