Macroeconomics: Principles, Problems, & Policies 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0-07766-077-3
ISBN 13: 978-0-07766-077-2

Chapter 2 - The Market System and the Circular Flow - Discussion Questions - Page 49: 11

Answer

The product market and resource market are distinct markets with distinct buyers. The resource market is largely (but not completely) comprised of businesses, for it involves labor and raw materials needed to make a product. However, the product market deals with the actual products after they are made, which are generally bought by households.

Work Step by Step

The product market and resource market are distinct markets with distinct buyers. The resource market is largely (but not completely) comprised of businesses, for it involves labor and raw materials needed to make a product. However, the product market deals with the actual products after they are made, which are generally bought by households.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.

GradeSaver will pay $15 for your literature essays
GradeSaver will pay $25 for your college application essays
GradeSaver will pay $50 for your graduate school essays – Law, Business, or Medical
GradeSaver will pay $10 for your Community Note contributions
GradeSaver will pay $500 for your Textbook Answer contributions