3
QuizMultiple Choice

Introduction to Macroeconomics

Question 3 • (Galli)WCA 2221 Civics/Economics 1st nine weeks 26-27

Which best describes what occurs in the product market?

Answer
A
the exchange of labor for capital
B
the exchange of goods and services for factors of production
C
the exchange of goods and services for money
D
the exchange of money for factors of production

Explanation

In the product market, households buy finished goods and services from businesses, paying money in exchange. Factors of production, such as labor and capital, are exchanged in the factor market instead. Therefore, the best description is “the exchange of goods and services for money.”

AI-written and checked against the verified answer.

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