2.1 Flashcards
whats a market?
bringing together buyers and sellers to buy and sell goods and services
market economy
an economy in which scarce resources are distributed by the markets forces of supply and demand
what are the three different sectors
primary, secondary, tertiary
primary sector
refers to the direct use of natural resources, fresh
secondary sector
refers to all the activities in the economy to do with the manufacturing and construction from the primary sector
tertiary sector
all the activities in an economy that involves the idea of a service
factor market
market in which the services of the factors of production are bought and sold
product market
a market in which final goods or services are offered to consumers, businesses and the public sector
specialisation
individuals, firms, regions and whole economies concentrate on producing those products they are best at producing
exchange
when a firm gives up something they have for something they possess(specialisation)
labour turnover
when the worker is too bored and leaves
division of labour
where the workers specialise in one area of the production process
