Economics - In the markets for goods and services,?
In the markets for goods and services,...
Choose one answer....
a. households and firms are both buyers.
b. households and firms are both sellers.
c. households are buyers and firms are sellers.
d. households are sellers and firms are buyers.
- Anonymous1 decade agoFavorite Answer
correct answer is c.
in goods market, goods and services are bought and sold. and households buy these and make payments to the firms who sell goods and services in exchange of money.
but in factor market, where factors of production are bought and sold, there is just opposite of goods market. in factor market, households are sellers and firms are buyers. households offer their factor services to the firms in exchange of money.
we earn money from our factor services in factor market and spend the earned money in goods market by purchasing goods and services.
- 7 years ago
- 1 decade ago