Factor Markets Flashcards
1
Q
What are factor markets
A
Supply of and demand for factors of production
Ie. Land, labour, capital and management
Look at how changes in demand for goods/ services TRANSLATE into changes in demand for labour, land
NO “INATE” demand for factors of production
Only useful for producing goods and services
KNOCK ON EFFECTS of reduced/ increased demand for goods and services
They impact on LABOUR MARKETS ( employment, wage levels) and land markets( availability, land prices etc)
