A City Guide To Surami for factor market: organized markets that facilitate the exchange of factors of production (i.e., labor, land, capital) between buyers and sellers. fiscal policy: when government chooses to affect economic activity with changes in government expenditure and/or taxation in order to accomplish specific macroeconomic goals. fixed costs: the economic cost associated with hiring fixed inputs to produce goods and services. Fixed costs consist of both sunk costs and recoverable fixed costs, and do not change with changes in output. foreign exchange: money or currency from different countries used to assist or facilitate international trade in goods, services, and financial assets. A City Guide To Surami 2016.