The role of markets

Question 1

Market

Answer 1

A way of bringing together buyers and sellers to buy and sell goods and services

Question 2

Market Economy

Answer 2

An economy in which scarce resources are allocated by the market forces of supply and demand

Question 3

Primary sector

Answer 3

The direct use of natural resources such as the extraction of basic materials and goods from land and sea

Question 4

Secondary sector

Answer 4

All activities in an economy that is concerned with either manufacturing or construction

Question 5

Tertiary sector

Answer 5

All activities in an economy that involves with the idea of service

Question 6

Factor market

Answer 6

Market in which the services of the factors of production are bought and sold

Question 7

Product market

Answer 7

Market in which final goods and services are sold

Question 8

Exchange

Answer 8

The giving up of something that the individual or firm has, in return for something they wish to have but do not possess.

Question 9

Specialisation

Answer 9

The process by which individuals, firms, regions, and whole economies concentrate on producing those products that they are best at producing

Question 10

Division of labour

Answer 10

Where workers specialise in, or concentrate on, one area of the production process