Factors & Products Market, Human Capital

Notes by Maria Fernanda

Factors Market: Is a type of market where the factors of production are bought and sold. An example is when entrepreneurs hire labor for wages and salaries, acquire land in return and borrow money.

Product Market: Is a type of market where producers sell goods and services. The money that businesses receive, use it to produce more goods and services and the cycle never stops.

Human Capital: Is the people’s abilities, knowledge, health, skills etc. Human Capital is a major contribution to any type of work. Government can invest in human capital by providing better education and health care. They may invest in other programs that improve the skills and motivation of the workers. Human Capital is the major contribution for productivity.