In the factor market:
A)businesses borrow money capital from households.
B)businesses sell services to households.
C)households sell resources to businesses.
D)firms sell raw materials to households.

Question

Quizplus · Accepted Answer

In the factor market, households sell their resources (such as labor, land, and capital) to businesses in exchange for payment or income. Therefore, the correct choice is C. A is incorrect because businesses borrow money capital from financial institutions, not households. B is incorrect because businesses sell goods and services to households in the product market, not the factor market. D is incorrect because in the factor market, firms buy resources from households, not the other way around.

In the Factor Market