Jnit 1 Quiz Fall 2023 Which statement below best describes the factor market? the market in which households purchase goods the market in which firms produce goods the market where households earn their income none of the above

## Step 1<br />The factor market, also known as the input market, is a market where resources or factors of production such as labor, capital, and raw materials are bought and sold. These resources are the inputs used in the production of goods and services.<br /><br />## Step 2<br />Households are the primary participants in the factor market. They provide labor, capital, and other resources to firms in exchange for income. This income is then used to purchase goods and services in the product market.<br /><br />## Step 3<br />Given the options, the statement that best describes the factor market is "the market where households earn their income". This is because households earn income by providing resources to firms in the factor market.