Markets

Question 1

What is a market?

Answer 1

1. Place where buyers and sellers meet to trade.
2. Market doesn’t have to be a physical place.
3. Producers offer goods and services to consumers.
4. Consumers offer money to producers in exchange for goods and services offered by the producers.
5. The money that consumers pay for the goods and services are known as “price”
6. Scarce products are expensive.

Question 2

What determines the “price”?

Answer 2

Supply and demand.

Question 3

Types of markets:

Answer 3

Goods and services market

Factor market

Question 4

What is a Goods market?

Answer 4

Physical, tangible things
Can be separated from its producer
Can be bought and owned

Question 5

What is a services market?

Answer 5

Intangible
Cannot be separated from the producer
Can be experienced or used

Question 6

What is a factor market?

Answer 6

The services of the factors of production are traded on a factor market.
The labour market and the financial markets.