Product markets Markets for goodslong dash—such as computerslong dash—and serviceslong dash—such as medical treatment.
Factor markets Markets for the factors of production, such as labor, capital, natural resources, and entrepreneurial ability.
Factors of production are divided into four broad categories:
includes all types of work, from the part-time labor of teenagers working at McDonald's to the work of top managers in large corporations.
refers to physical capital, such as computers and machine tools, that is used to produce other goods.
resources include land, water, oil, iron ore, and other raw materials (or "gifts of nature") that are used in producing goods.
entrepreneur is someone who operates a business. Entrepreneurial ability is the ability to bring together the other factors of production to successfully produce and sell goods and services.