Households supply factors of production to businesses and are paid by businesses for doing so. The market where this interaction takes place is called the factor market.

Name: Households supply factors of production to businesses and are paid by businesses for doing so. The market where this interaction takes place is called the factor market.
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Question

Quizplus · Accepted Answer

Households provide labor, land, and capital to businesses in exchange for wages, rent, and interest in the factor market.

Households Supply Factors of Production to Businesses and Are Paid