Inputs are traded in the factor market.

Factor Market

A marketplace for the services of a factor of production, such as labor, capital, and land.

Inputs

The resources (such as labor, materials, and capital) used in the production process to create goods or services.

Understand the function of households and businesses within the markets for inputs and outputs.

Verified Answer

Final Answer :

True

Explanation :

Inputs such as labor, capital, and raw materials are traded in the factor market, where firms acquire what they need to produce goods and services.

Learning Objectives

Understand the function of households and businesses within the markets for inputs and outputs.