Question

Suppose Becky earns $650 per week working as an analyst for A-plus Accountants. She uses $10 to order a mojito cocktail at Little Havana. Little Havana pays Alex $250 per week to wait tables. Alex uses $250 to purchase tax services from A-Plus Accountants.Identify whether each of the following events in this scenario occurs in the resource market or the product market.1.Alex earns $250 per week working for Little Havana. (Resource Market / Product Market)2. Becky spends $10 to order a mojito cocktail. (Resource Market / Product Market)3. Becky earns $650 per week working for A-Plus Accountants. (Resource Market / Product Market)

Answer 1

Answer:

1. Resource Market

2. Product Market

3. Resource Market

Explanation:

Resource Market

The resource market deals with resources and the means of production of goods.

Product Market

The product market deals with products and physical goods

1. Alex earns $250 per week working for Little Havana

Here Little Havana provides means for product i.e. cocktails and hence is a resource market.

2. Becky spends $10 to order a mojito cocktail.

Here Becky is buying the product, hence Product Market

3. Becky earns $650 per week working for A-Plus Accountants.

Here A-Plus Accountants provides means for product i.e. tax services and hence is a resource market.