Overview
Understanding the difference between factor and product markets is essential for grasping basic economic principles. The factor market deals with the resources needed for production, such as labor and capital, while the product market focuses on the sale of goods and services to consumers. These mar...
Key Terms
Example: The labor market where workers offer their skills.
Example: Grocery stores selling food products.
Example: The number of cars available at a dealership.
Example: High demand for smartphones during holiday sales.
Example: Land, labor, and capital.
Example: Workers in a factory assembling products.
Related Topics
Key Concepts
Factor MarketProduct MarketSupply and DemandEconomic Resources