Factor Market

What is a factor market?

• A place where only capital goods are sold

• A place where resources to make goods and services are bought and sold

• A place where goods and services are sold

• A place where only natural resources are sold

Which of the following is NOT a factor of production sold in a factor market?

• Human resources

• Capital goods

• Consumer goods

• Natural resources

What determines the operations of a factor market?

• Consumer preferences

• Supply and demand

• Government regulations

• International trade agreements

Which of the following is an example of a factor market?

• Labor market

• Grocery store

• Online store

• Banking

What is a product market?

• A place where only capital goods are sold

• A place where goods and services are sold

• A place where only labor is sold

• A place where resources are bought and sold

Which of the following is NOT an example of a product market?

• Labor market

• Online stores

• Banking

• Grocery store

What is the main difference between a factor market and a product market?

• The geographical location

• The category of items being offered and sold

• The laws of supply and demand

• The number of participants

What is equilibrium quantity?

• The total amount of resources sold in a market

• The total amount of goods sold in a market

• The spot on a supply and demand curve where supply quantity and demand quantity meet

• The price where supply and demand meet

What is a monopsony?

• A market with no competition

• A market with one buyer

• A market with many buyers and sellers

• A market with one seller

In a monopsony, what is the usual result due to lack of competition?

• High wages

• Low wages

• Low prices for goods

• High prices for goods