alleryStart learning →Labor markets are described as one example of a broader category, namely:
AProduct markets
BRetail markets
CExport markets
DFactor markets
Answer & Solution
Correct answer: D. Factor markets
1. Labor is one of several inputs firms must buy.
2. Factor payments include wages for labor and interest for financial capital.
3. Each factor payment is determined in its respective factor market.
4. The focus here falls on labor markets, but other factor markets operate similarly.
5. So labor markets are one instance of factor markets.
_Source: OpenStax Principles of Microeconomics for AP Courses 2e (CC BY 4.0), Ch 15 'Labor Markets and Income'_
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