Question

Mary spends $5 on food for her cat. This is an example of a: a. household buying goods and services in the factor market. b. household buying goods and services in the product market. c. household selling a resource in the factor market. d. business buying goods and services in the product market.

Answer 1

Answer:

household buying goods and services in the product market

Explanation:

The product market is where final goods and services are sold to households and firms.

The factor market is where factors of production are exchanged.

Mary is buying food for her cat. There are no indications that Mary is a business and that the food is a factor of production. Therefore, Mary is an household and she's purchasing from the product market.

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