Which of the following are typically found in the product market?

• A. Goods and services sold by firms to households
• B. Raw materials purchased by firms
• C. Labor supplied by households to firms
• D. Financial capital provided by banks

Answer: (A)

Verified step by step guidance

1. Understand the definition of the product market: it is the marketplace where final goods and services are bought and sold between firms and households.
2. Identify the participants in the product market: firms are sellers offering goods and services, while households are buyers purchasing these goods and services.
3. Recognize that raw materials purchased by firms are part of the factor market, not the product market, because these are inputs used in production.
4. Note that labor supplied by households to firms is also part of the factor market, as labor is a factor of production, not a final good or service.
5. Understand that financial capital provided by banks relates to the financial market, which deals with funds and investments, not the exchange of goods and services.