Why It Matters: Resource Markets

A resource market is a market where a business can go and purchase resources to produce goods and services. Resource markets can be distinguished from product markets, where finished goods and services are sold to consumers, and financial markets, where financial assets are traded.

What is included in a resource market?
There are several types of resources that are included in resource markets. They include land, labor, entrepreneurship, capital, and natural resources.

What is another name for the resource market?
A resource market may also be referred to as a factor market. Economists use it to separately refer to all the resources that businesses employ to legally acquire what they need to undertake in the production of goods and services. It can also be termed the input market. It is made up of both real and virtual goods and services.

What are product and resource markets?
The formal difference between a resource market and a product market is that in a resource market, businesses purchase the resources required to create a product. In contrast, in a product market, actual goods and services that businesses have developed are sold. The key difference lies in the importance of the finished product or service.

What is an example of a resource market?
There are several examples of resource markets. One of them is the labor unions which provide labor for corporations on certain agreed terms. Another examples of capital in resource markets include vehicles, heavy machinery, office buildings, proprietary software, and manufacturing facilities. These resources are usually employed long-term to allow corporations to continually develop and present products for sale.