Question

Choose the most appropriate option(s).

• A. A product market is a place where the labour, capital, and land are bought and sold.
• B. A factor market is a place where the labour, capital, and land are bought and sold.
• C. A product market is a place where goods and services are bought and sold.
• D. A factor market is a place where goods and services are bought and sold.

Answer 1

Answer: (B), (C)

A product market is a place where goods and services are bought and sold.

Markets are broadly divided into two types: the product market and the factor market. A product market is a place where goods and services are bought and sold, whereas, a factor market is a place where the labour, capital, and land are bought and sold.