A baker purchases flour so he can make goods and sell them in his bakery. The baker purchased the flour in a product market.

A. True

B. False

A baker purchases flour so he can make goods and sell them in his bakery. The baker purchased the flour in a product market is a FALSE statement.

Explanation:

In Economics, Product market is a place where the business person or public sector buys finished or final goods. They do not include buying or selling of raw materials.

When the baker would buy flour and then prepare goods to sell in his bakery, the flour is not a finished product. It is the raw material which is being used to prepare the finished product. So, baker would not buy it from the product market.

A baker purchases flour so he can make goods and sell them in his bakery. The baker purchased the flour in a product market. False.