alleryStart learning →Payments such as wages for labor and interest for financial capital are determined in:
AFactor markets
BProduct markets
CForeign markets
DFutures markets
Answer & Solution
Correct answer: A. Factor markets
1. Inputs to production are traded in their own markets.
2. Wages for labor and interest for financial capital are factor payments.
3. Each of these factor payments is determined in their respective factor markets.
4. Product markets instead trade finished goods.
_Source: OpenStax Principles of Microeconomics for AP Courses 2e (CC BY 4.0), Ch 15 'Labor Markets and Income'_
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