3.1

Question 1

what does a market refer to

Answer 1

any case where people exchange goods and services

Question 2

what is the economic problem of scarcity

Answer 2

Due to the fact that as people we all have needs and wants but have limited amounts of resources like money to acquire them.

Question 3

• redraw the diagram (source3.1.2)
• explain how it works

Question 4

different areas markets cover
- labour

Answer 4

the buying of labour is when employers pay people to work

Question 5

different areas markets cover
- stock

Answer 5

• companies sell shares to make money for investments
• shareholders buy and sell shares as investments to increase their wealth

Question 6

different areas markets cover
- commodity
(GOT)

Answer 6

• includes purchasing raw materials like gold, oil, timber etc.
• the main buyers are firms who use commodities to manufacture products

Question 7

different areas markets cover
- retail
(SMPOS

Answer 7

• goods that are sold to consumers in special market places, online and in shops

Question 8

different areas markets cover
- wholesale

Answer 8

• goods sold to retailers in bulk for less money than the retail price