Question

I'm just confused about this one concept. My lecture notes say the following:

Markets for goods + services:
- firms sell
- households buy

Markets for Factors of Production:
- Households sell
- Firms buy

I don't understand the "factors of production". What does that even mean? Thanks

Answer 1

This site may help you.

http://www.landandfreedom.org/econ/econ2p.htm

Answer 2

Thanks so much, Ms. Sue!

Answer 3

You're welcome, Lena.