Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Firms seeking labor
B
Workers offering their skills
C
Government regulations
D
Educational institutions
Understanding the Answer
Let's break down why this is correct
Answer
In factor markets, the demand side is represented by businesses and firms that need resources to produce goods and services. These resources, or factors of production, include labor, capital, and land. For example, a company may need to hire workers to build cars, so it represents the demand for labor in the factor market. The higher the demand from businesses for these resources, the more they are willing to pay, which influences wages and rents. Therefore, firms drive the demand side of the factor market by seeking the inputs necessary for their production processes.
Detailed Explanation
Firms need workers to help them produce goods and services. Other options are incorrect because This option confuses supply with demand; Regulations are rules set by the government.
Key Concepts
Factor markets
Topic
Product and Factor Markets
Difficulty
easy level question
Cognitive Level
understand
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