What is a factor market?

Question

Quizplus · Accepted Answer

A factor market is a market for the factors of production, including labor, capital, land, and entrepreneurship. These factors are used to produce final goods and services, and are traded in the market to allow producers to acquire the resources needed for production. Therefore, option D is the correct choice as it describes the market for the resources used in production. Options A and B are incorrect as they refer to financial markets, which are different from factor markets. Option C is also incorrect as it refers to a market for producers to acquire goods, not factors of production.

What Is a Factor Market