Which of the following transactions would take place in the resource market?

• A. A firm hires a new employee to work in its factory.
• B. An individual buys shares of stock in a corporation.
• C. A consumer purchases a new laptop from an electronics store.
• D. A company sells its finished products to a wholesaler.

Answer: (A)

Verified step by step guidance

1. Understand the concept of the resource market: It is the market where factors of production (such as labor, land, and capital) are bought and sold. Firms demand resources, and households supply them.
2. Identify the nature of each transaction: Determine whether the transaction involves the exchange of resources (inputs) or finished goods and services.
3. Analyze the first option: 'A firm hires a new employee to work in its factory.' This involves the firm purchasing labor, which is a resource, so this transaction occurs in the resource market.
4. Analyze the other options: Buying shares is a financial market transaction, purchasing a laptop is a product market transaction involving consumer goods, and selling finished products to a wholesaler is also a product market transaction.
5. Conclude that only the transaction where a firm hires an employee takes place in the resource market because it involves the exchange of a factor of production (labor).