Answered: There are two kinds of markets in…

There are two kinds of markets in circular flow diagram in economics These are product markets and factor markets. A factor market is the market for goods and services.Is that true or false?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter2: Thinking Like An Economist

Section: Chapter Questions

Problem 4QR

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Concept explainers

Perfect Competition

It is the structure of the market that is said to exist when with many buyers and sellers exchanging similar commodities and its price is fixed by the market forces, demand, and supply, and a single firm cannot cause an impact over the price or market value of the homogenous product. This structure of the market is called perfect competition.

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There are two kinds of markets in circular flow diagram in economics
These are product markets and factor markets.

A factor market is the market for goods and services.Is that true or false?

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