Bob works for a firm that produces umbrellas. He receives payment for his labor. The firm wants to expand but lacks the capital needed for the expansion. Bob, a person of some means, provides the capital. What market(s) are these payments made in?
A) illegal market
B) goods and services market
C) product market
D) resource market
E) umbrella market

Question

Quizplus · Accepted Answer

Payments for labor are transactions in the resource market, where factors of production (like labor and capital) are bought and sold. Bob's payment for his labor and his provision of capital to the firm are both part of the resource market.

Bob Works for a Firm That Produces Umbrellas