A resource market is a marketplace where factors of production, such as labor, capital, land, and raw materials, are bought and sold. These resources are essential for the production of goods and services in an economy.
For example, consider a job fair where companies are looking to hire workers. In this scenario, job seekers offer their labor, and employers represent the demand for that labor. The interaction between these two groups constitutes a resource market, as the employers are purchasing the labor resource—the individuals who will work for them. This illustrates how resource markets function in pairing supply (workers) with demand (jobs).