Markets Flashcards
What is a market
Any contact or communication between actual and potential buyers and actual and potential sellers of goods and services
What is the product market
Where goods and services are exchanged
Known as goods market or output market
What goods are found in product market
Consumer goods: for households for consumption
Capital goods: for businesses for production
What is the factor market
Where factors of production are traded
Known as resource market
What markets are found in factor market
Labour market: employment agency
Money or financial capital market: stock market
Land market
What is the money market
For short term loans and savings
Eg SARB
What is the capital market
For long term deposits and borrowings negotiations
Eg JSE
What is the foreign exchange market
Where foreign currency is bought and sold
Demand for currencies is derived demand
What are the types of markets
Product Factor Capital Money Foreign exchange
