What is a factor market?
A)It is a market where financial instruments are traded.
B)It is a market where stocks and bonds are traded.
C)It is a market where producers buy consumption and capital goods.
D)It is a market where resources used to produce final goods are traded.

Question

Quizplus · Accepted Answer

A factor market is a market where resources used to produce final goods are traded. These resources include land, labor, physical capital, and human capital. In this market, individuals and firms who own these resources offer them for sale to businesses who need them to produce goods and services. Examples of factor markets include the labor market (for hiring workers), the real estate market (for renting or buying land), and the financial market (for obtaining capital).

What Is a Factor Market