Which of the following transactions does not take place in the markets for factors of production in the circular-flow diagram?
A)a landowner leases land to a farmer
B)a farmer hires a teenager to help with harvest
C)a construction company rents trucks for its business
D)a woman buys corn for dinner

Question

Quizplus · Accepted Answer

The markets for factors of production refer to the markets where businesses purchase resources such as labor, land, and capital to produce goods and services. Buying corn for dinner is a transaction in the market for goods and services, not the market for factors of production.

Which of the Following Transactions Does Not Take Place in the Markets