Economic statement: True or false?
Factors of production are traded in the product market?
Is it true or false?
- 1 decade agoFavourite answer
I would say false. It's true that information can be considered a product, however if we define "product" as a thing that has a purpose in exchange for a valuable, then the "product market" or any industry for that matter sells high numbers of useful products and yet demanding only money in exchange. Also, production is the basis of morale, so the more produced, the happier your employees.
- 1 decade ago
False. Factors of production: land, labour, and capital.
Last time I got a job, I wasn't "traded in the product market"
- 1 decade ago
I will say true? because, Product Markets: The product markets exchange the production of final goods and services, what is formally termed gross domestic product. The buyers of this production are the four macroeconomic sectors--household, business, government, and foreign. The seller of this production is primarily the business sector. A substantial part of macroeconomics is devoted to explaining how and why gross domestic product exchanged through the product markets rises or falls.
- Anonymous1 decade ago
This is not really an answer, but it depends how you define 'product market'. I am too lazy to look it up. I think it means retail goods. A retail good is not a 'factor of production'. A 'factor of production' is a thing that is used in producing other things, more commonly and specifically (as noted above) land, labor and capital goods.
There is of course a gray line. For example, a rock might be factor of production to a cement plant, if ground accordingly, but it might be sold in Home Depot to consumers who put them in their gardens.
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- mudasarLv 44 years ago
I could opt for actual. Cobb-Douglas creation which the sum of creation elasticities of enter is identical to one million, or Q=AK*aL*b,a+b=one million is steady go back to scale. A double of inputs gets a double of output. In distinction, if a+b <one million, or diminishing go back, it'll be lowering go back to scale. And If a+b >one million, it'll be growing go back to scale.