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Identify Whether Each of the Following Transactions Will Take Place

question 154

Essay

Identify whether each of the following transactions will take place in the factor market or in the product market.
a.Graciela buys a Tesla Motors Model X.
b.Lashan works 60 hours a week at a law firm.
c.Tito sells his family's farmland to a housing developer.
d.Tesla Motors increases employment at its Fremont, California plant.


Definitions:

Business Profits

The financial gain realized when the revenue generated from business activities exceeds the expenses, taxes, and costs associated with sustaining the business operations.

Business Purpose

Business purpose is the fundamental reason for an organization's existence, beyond just making a profit, often reflecting its values, mission, and the needs it seeks to fulfill.

Discretionary Responsibility

The expectation for businesses or individuals to take actions that are not mandated by laws or regulations, but are considered ethically correct.

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