Markets and Allocation of Resources Flashcards
1
Q
What is a Market?
A
A place where Producer and Consumers come together to exchange Goods & Services
2
Q
What are Factor Markets?
A
Factor Inputs are bought and sold
3
Q
What are Product Markets?
A
Goods & Services are sold to households
4
Q
Why do Firms sell Goods & Services?
A
To make profit
5
Q
Consumers…
A
Demand
6
Q
Producers…
A
Supply
