Which of the following is most likely to be purchased in the factor market?
You will choose two answers for this question.
Shampoo and dog food
Cement and copper wire
Opera tickets and sushi
Automobiles and deodorant
Dirt and timber
I know that dirt and timber is one of the answers - but cannot figure out what the other could be. Any help?
Dirt and Timber, Cement and Copper Wire
To determine which of the given options is most likely to be purchased in the factor market, we need to understand what the factor market represents. The factor market is where firms buy the factors of production, which include resources like labor, land, and capital goods.
Now let's analyze the choices:
1. Shampoo and dog food: These products are typically purchased by consumers in the product market. They are not directly related to the factors of production, so they are unlikely to be purchased in the factor market.
2. Cement and copper wire: These items are essential materials used in construction and manufacturing processes. Therefore, they are commonly purchased as inputs by firms operating in those industries. Cement and copper wire are likely to be purchased in the factor market.
3. Opera tickets and sushi: Opera tickets and sushi are both final products that are purchased by consumers as finished goods in the product market. They are not directly related to the factors of production, so they are unlikely to be purchased in the factor market.
4. Automobiles and deodorant: Like opera tickets and sushi, automobiles and deodorant are final products consumed by individuals. They are not factors of production, so they are unlikely to be purchased in the factor market.
5. Dirt and timber: Dirt and timber are examples of natural resources, specifically land resources. These resources are fundamental to various industries, such as construction and forestry. Therefore, dirt and timber are likely to be purchased in the factor market.
Based on the analysis above, the two options most likely to be purchased in the factor market are cement and copper wire, as well as dirt and timber.