Question

James works at an automobile factory. Every day he goes to work and inspects the machines at the factory to make sure they are running smoothly. At the end of every week, James is paid by his boss, Bill, for his good work. James takes his paycheck to the bank every Friday and deposits most of it, but keeps a little bit of spending money. He then takes his wife, Julie, out for dinner, using the leftover money from his paycheck. According to the circular flow of economics, which market is James participating in by going out to dinner with his wife, Julie?A) Stamp MarketB) Factor MarketC) Product MarketD) Automobile Market

Answer 1

The correct answer is (C)

Step-by-step explanation:

According to circular flow of economics James is participating in a product market. Product market is a place where final goods and services are sold to the customers such as restaurants. James has saved money from his pay check to go to a restaurant with his wife, where he can buy finished goods and services so he has saved some money to go to a product market.