Product Market : Goods :: Factor Market : ?

Product markets and factor markets are two important parts of the economy. In a product market, people buy and sell goods, like food or clothes. Similarly, in a factor market, people buy and sell factors of production, which are the resources needed to create those goods, such as labor, land, and capital. For example, when a company hires workers to produce cars, it is participating in the factor market by purchasing labor. So, just as goods are sold in the product market, labor and other resources are exchanged in the factor market.