Question

Which of the following is not a category of inputs traded on the factor market?

• A. Labour
• B. Entreprenurial ability
• C. Capital
• D. Intermediate goods

Answer 1

The correct option is D Intermediate goods

Intermediate goods are traded on the product markets. Product markets are markets for goods like a computer and service like medical treatment. In product markets, households demand and firms supply.

Factor markets are markets for any factor of production. Factors of production are the inputs. They are used to produce the goods and services.Factors of production are divided into four broad categories: Land, Labor, Capital & Entrepreneurial Ability.