What Is a Factor Market

question 77

Multiple Choice

What is a factor market?

• A)It is a market where financial instruments are traded.
• B)It is a market where stocks and bonds are traded.
• C)It is a market where producers buy consumption and capital goods.
• D)It is a market where resources used to produce final goods are traded.

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Definitions:

Marginal Utility

The change in total utility a consumer experiences from consuming one additional unit of a good or service.

Total Utility

The complete pleasure derived from the consumption of a specific amount of products or services.

Consumption

The utilization of products and services by families.

Marginal Utility

The change in total utility a person receives from consuming one additional unit of a good or service.