Asked by Eskarlin Sanchez on Jul 21, 2024
Verified
In the factor market,households buy goods and services.
Factor Market
A marketplace for the services of a factor of production (such as labor, capital, or land), where these services are bought and sold.
Households
Units of individuals living together, making economic decisions as a single entity, often a family or people sharing living space.
- Recognize critical elements of production and their functions.
- Understand the foundational principles of the circular-flow diagram and the functioning of markets.
Verified Answer
BK
billa koushikJul 22, 2024
Final Answer :
False
Explanation :
In the factor market, households provide factors of production such as labor, capital, and land to firms in exchange for income. They do not buy goods and services in this market.
Learning Objectives
- Recognize critical elements of production and their functions.
- Understand the foundational principles of the circular-flow diagram and the functioning of markets.
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