Which of the following is true in the factor market?

Question

Quizplus · Accepted Answer

In the factor market, businesses buy resources (such as labor, capital, and natural resources) from households. Therefore, choice D is the correct answer. A is incorrect because businesses borrow funds from financial institutions, not households, in the financial market. B is incorrect because households do not typically sell resources to businesses. C is incorrect because households do not typically produce or sell consumer goods to businesses in the factor market.

Which of the Following Is True in the Factor Market