Question
Steel Beam Inc. is looking to purchase a new steel-processing machine and factory. In the circular flow diagram, this transaction will take place in the Forelgn Exchange market Resource market Public market Product market.
Answer
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Franklin
Elite · Tutor for 8 years
Answer
Resource market
Explanation
In the circular flow diagram, transactions involving the purchase of machinery and factories, which are considered capital goods, occur in the resource market. The resource market is where businesses acquire the factors of production, such as labor, land, and capital, needed to produce goods and services.