Markets and allocation of resources Flashcards
1
Q
What is a market?
A
A market is a place where buyers and sellers meet to exchange money for goods and services (can be physical or digital)
2
Q
How does markets play a role in the allocation of resources?
A
Consumers are able to chose what they want to purchase and producers can chose what they want to sell
3
Q
What is a factor market?
A
A factor market is where factor inputs are bought and sold
e.g. labour for wages and land for rent
