ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In economics, a factor market is a market where factors of production are bought and sold. Factor markets allocate factors of production, including land, labour and capital, and distribute income to the owners of productive resources, such as wages, rents, etc.

Detailed explanation-2: -In economics, factors of production are the resources people use to produce goods and services; they are the building blocks of the economy. Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship.

Detailed explanation-3: -In an arena of exchange known as the factor market, firms purchase factors of production, such as renting land, hiring and paying workers, and borrowing money, from households.

Detailed explanation-4: -A market system is the network of buyers, sellers and other actors that come together to trade in a given product or service.