Question

Identify whether each of the following events in this scenario occurs in the resource markets or the product markets.

(A) Ginny earns $750 per week working for PC Pros.
(B) Eric earns $400 per week working for Dinah's Diner.
(C) Eric spends $225 to purchase software from PC Pros.

Answer 1

A) Ginny earns $750 per week working for PC Pros. (Resource market)

B) Eric earns $400 per week working for Dinah's Diner. (Resource market)

C) Eric spends $225 to purchase software from PC Pros. (Product market)

Step-by-step explanation:

The resource market is where labor, capital, land, and entrepreneurship (also known as the factors of production) are exchanged for compensation. The product market is where products are exchanged from businesses to households thanks to monetary retribution.

In that case:

A) Ginny earns $750 per week working for PC Pros. (Resource market)

B) Eric earns $400 per week working for Dinah's Diner. (Resource market)

C) Eric spends $225 to purchase software from PC Pros. (Product market)