27
QuizMultiple Choice

Introduction to Macroeconomics — Quiz

Question 27 • Personal Finance and Economics

Which best describes what occurs in the product market?

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

Explanation

In the product market, businesses sell goods and services to consumers, who pay money for them. That is an exchange of goods and services for money, so choice C is correct. Factors of production, such as labor and capital, are exchanged in the factor market instead.

AI-written and checked against the verified answer.

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