Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Goods and services
B
Capital and land
C
Unemployment rates
D
Government regulations
Understanding the Answer
Let's break down why this is correct
Answer
Factor markets are where businesses buy the resources they need to produce goods and services, such as labor. So, if factor markets are related to labor, product markets are related to the goods and services that businesses sell to consumers. In product markets, companies offer their finished products, like toys or cars, to buyers who want to purchase them. For example, when a toy company sells its toys to children and their parents, it is operating in the product market. Thus, just as labor is bought in factor markets, goods and services are sold in product markets.
Detailed Explanation
Factor markets deal with labor, which is a resource for making things. Other options are incorrect because This option confuses types of resources; Unemployment rates measure how many people are without jobs, not what we buy.
Key Concepts
Factor Markets
Product Markets
Labor Economics
Topic
Factor Markets and Monopsonies
Difficulty
easy level question
Cognitive Level
understand
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