📚 Learning Guide
Factor Markets and Monopsonies
easy

Factor markets are to labor as product markets are to what?

Master this concept with our detailed explanation and step-by-step learning approach

Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose 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

Ready to Master More Topics?

Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.