Question

Government is on the______________.a. supply side of both factor markets and goods markets.b. supply side of factor markets and the demand side of goods markets.c. demand side of factor markets and the supply side of goods markets.d. demand side of both factor markets and goods markets.

Answer 1

The answer is D.

Step-by-step explanation:

Yes, government is on demand side of both factor markets and goods market.

What are factor markets and goods markets? - Factor markets are markets im which one can buy factors of production like labour, capital while goods markets are market where one can buy goods and services.

Government demand for labour by employing its citizens to ministries, agencies and department and also demand for capital in the financial market. Government borrows money to meet its obligation. Therefore, government is on the demand side in factor market.

Also for goods markets, government buys equipment and infrastructure, employs the service of professionals. They are on the demand side for goods markets too.