Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

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

Answer

The answer is below.

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.