Markets

Question 1

What leads to change in the Markets?

Answer 1

Supply and Demand shifts, government policies such as taxes, global events like wars & pandemics, technology advances and consumer preferences.

Question 2

What is a market in an economic context?

Answer 2

a market a system where producers exchange goods and services with consumers in return for money. It can be physical (like a store) or digital (like online shopping) and is driven by supply and demand.

Question 3

Supply

Answer 3

The quantity of a good that a producer is willing to sell or produce.

Question 4

Demand

Answer 4

The quantity of goods and services that a consumer is willing or prepared to buy at a given price.

Question 5

What is trade?

Answer 5

Buying and selling goods/services across borders

Question 6

Strengths of trade

Answer 6

1. more business opportunities
2. Creates jobs
3. Lower prices for consumers
4. Economic growth

Question 7

Weaknesses of trade

Answer 7

1. A country may rely too much on imports, risking shortage if imports are unavailable
2. If a country imports more than it exports it can lead to economic problems like debts
3. Trade can cause worldwide pollution and overuse of resources