Untitled Deck

Question 1

The production and consumption of goods and services interface in the market. A

Question 2

market is any arrangement that enables buyers and sellers to obtain information and

Question 3

to do business with one another. The word ‘market’ as used by economists is detached

Question 4

from any physical and geographical coverage. The market comprises a series of

Question 5

interconnected markets1. These are assumed to be highly competitive and to operate

Question 6

free of government interference. In reality

Answer 6

many markets are subject to monopolistic

Question 7

influences

Answer 7

and government intervention in the market system is a feature of even the

Question 8

most capitalist society. Indeed

Answer 8

in some circumstances

Question 9

condition for achieving economic efficiency. This should ideally occur in a conducive

Question 10

environment including a stable institutional framework of law and order within which

Question 11

market transactions can be conducted.