Economics A-Level
Factor markets
What Factor markets means in Economics A-Level, as defined for AQA.
Definition of Factor markets
Check what you remember
Read the wording for your board, then hide it and explain Factor markets in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
Markets where firms hire inputs like labour, land, and capital solely to produce goods and services that consumers want to buy.
Topics that use Factor markets
- The demand for labour, marginal productivity theory (AQA A-Level)
Related terms
- Demand curve for labour
- Derived demand
- Law of diminishing returns
- Marginal revenue product
- Profit maximisation
- Substitutes and complements
- Labour productivity
- Wage rate
Using Factor markets in the exam
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