A general study of resource markets shows that the roles of firms and households are:
A)reversed from what they are in the product markets.
B)the same as what they are in the product markets.
C)different from what they are in the product markets because households are residual claimants.
D)different from what they are in the product markets because firms are residual claimants.
E)different from what they are in the product markets because the laws of demand and supply do not work for the resource markets.

Question

Quizplus · Accepted Answer

In resource markets, firms demand resources (like labor, capital) and households supply them, which is the reverse of their roles in product markets where firms supply goods and services and households demand them.

A General Study of Resource Markets Shows That the Roles