In the markets for goods and services, as in the markets for the factors of production, households are buyers and firms are sellers.

Question

Quizplus · Accepted Answer

In the markets for goods and services, households are typically the buyers and firms are the sellers. However, in the markets for the factors of production (like labor, land, and capital), households are the sellers (providing labor, for example) and firms are the buyers.

In the Markets for Goods and Services, as in the Markets