Question

Households and businesses are _______.

1) both buyers in the resource market.
2) both sellers in the product market.
3) sellers in the resource and product markets respectively.
4) sellers in the product and resource markets respectively.

Answer 1

Households are buyers in the goods and services market and sellers in the labor market.

Step-by-step explanation:

In the goods and services market, households are primarily buyers. They purchase goods and services produced by businesses in this market. On the other hand, in the labor market, households are primarily sellers. They supply their labor to businesses in exchange for wages or salaries.