Which of the following is TRUE about product markets?
A) Goods and services flow from households to firms.
B) Goods and services flow from firms to households.
C) Factors (land, labor, capital, and entrepreneurial ability) flow from households to firms.
D) Factors (land, labor, capital, and entrepreneurial ability) flow from firms to households.

Question

Quizplus · Accepted Answer

In product markets, goods and services flow from firms to households, as firms produce and sell products to consumers. Factors of production, including land, labor, capital, and entrepreneurial ability, flow from households to firms in factor markets, as individuals provide these resources to firms in exchange for payment.

Which of the Following Is TRUE About Product Markets