Multiple Choice
Which of the following economic conditions can affect career opportunities related to the factors of production?
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0. Basic Principles of Economics
Factors of Production
Multiple Choice
Which of the following transactions would take place in the resource market?
A
A firm hires a new employee to work in its factory.
B
An individual buys shares of stock in a corporation.
C
A consumer purchases a new laptop from an electronics store.
D
A company sells its finished products to a wholesaler.
Verified step by step guidance1
Understand the concept of the resource market: It is the market where factors of production (such as labor, land, and capital) are bought and sold. Firms demand resources, and households supply them.
Identify the nature of each transaction: Determine whether the transaction involves the exchange of resources (inputs) or finished goods and services.
Analyze the first option: 'A firm hires a new employee to work in its factory.' This involves the firm purchasing labor, which is a resource, so this transaction occurs in the resource market.
Analyze the other options: Buying shares is a financial market transaction, purchasing a laptop is a product market transaction involving consumer goods, and selling finished products to a wholesaler is also a product market transaction.
Conclude that only the transaction where a firm hires an employee takes place in the resource market because it involves the exchange of a factor of production (labor).
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