Input or factor markets the markets in which the

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input or factor markets The markets in which the resources used to produce products are exchanged.
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7 of 69 In the input , or factor markets , which side of the market do firms and households occupy? a. Firms are on the supply side and households on the demand side. b. Firms are on the demand side and households on the supply side. c. Both firms and households are on the demand side. d. Both firms and households are on the supply side. e. Neither firms nor households are part of the demand side or the supply side.
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Hh and firms interact in two basic kinds of markets: product and input markets 3.2 - Input Markets and Output Markets: The Circular Flow
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9 of 69 3.2 - Input Markets and Output Markets: The Circular Flow Labor market Capital market Land market
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10 of 69 3.2 - Input Markets and Output Markets: The Circular Flow factors of production The inputs into the production process. Land, labor, and capital are the three key factors of production.
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11 of 69 Which of the following is supplied by households in factor markets ? a. Labor. b. Savings. c. Land. d. All of the above. e. None of the above.
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12 of 69 3.1 - Firms and Households: The Basic Decision-Making Units 3.2 - Input Markets and Output Markets: The Circular Flow 3.3 - Demand in Product/Output Markets 3.3.1 - Changes in Quantity Demanded versus Changes in Demand 3.3.2 - Price and Quantity Demanded: The Law of Demand 3.3.3 - Other Determinants of Household Demand 3.3.4 - Shift of Demand versus Movement Along the Demand Curve 3.3.5 - From Household Demand to Market Demand 3.4 - Supply in Product/Output Markets 3.4.1 - Price and Quantity Supplied: The Law of Supply 3.4.2 - Other Determinants of Supply 3.4.3 - Shift of Supply versus Movement Along the Supply Curve 3.4.4 - From Individual Supply to Market Supply 3.5 - Market Equilibrium 3.5.1 - Excess Demand 3.5.1 - Excess Supply 3.5.1 - Changes in Equilibrium
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13 of 69 3.3 - Demand in Product/Output Markets A household’s decision about what quantity of a particular output, or product, to demand depends on a number of factors
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14 of 69 3.3 – Demand in Product/Output Markets quantity demanded The amount (number of units) of a product that a household would buy in a given period if it could buy all it wanted at the current market price.
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15 of 69 3.1 - Firms and Households: The Basic Decision-Making Units 3.2 - Input Markets and Output Markets: The Circular Flow 3.3 - Demand in Product/Output Markets 3.3.1 - Changes in Quantity Demanded versus Changes in Demand 3.3.2 - Price and Quantity Demanded: The Law of Demand 3.3.3 - Other Determinants of Household Demand 3.3.4 - Shift of Demand versus Movement Along the Demand Curve 3.3.5 - From Household Demand to Market Demand 3.4 - Supply in Product/Output Markets 3.4.1 - Price and Quantity Supplied: The Law of Supply 3.4.2 - Other Determinants of Supply 3.4.3 - Shift of Supply versus Movement Along the Supply Curve 3.4.4 - From Individual Supply to Market Supply 3.5 - Market Equilibrium 3.5.1 - Excess Demand 3.5.1 - Excess Supply 3.5.1 - Changes in Equilibrium
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16 of 69 3.3 - Demand in Product/Output Markets The most important relationship in individual markets is that between market price and quantity demanded.
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