Principles of Microeconomics, 7th Edition

Published by South-Western College
ISBN 10: 128516590X
ISBN 13: 978-1-28516-590-5

Chapter 2 - Part I - Thinking Like an Economist - Questions for Review: 4

Answer

A family participates in the product market whenever it purchases finished goods such as a car, a television or clothes. A family may participate in the factor market if they work as farmers. Here, they produce components such as wheat or barley which are to eventually be used in making final products such as oatmeal.

Work Step by Step

The product market relates to final goods. Individuals who participate in the product market will purchase things like food or printers. The factor market is concerned with labor and the, so called, factors of production. Put simply, these are the components which go into creating a product.
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.