2.1 The Role of Markets in Allocating Resources (Cambridge (CIE) IGCSE Economics) Flashcards

Exam code: 0455 & 0987

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  • Define market.

Cards in this collection (7)

  • Define market.

    A market is any place or process that brings buyers and sellers together to exchange goods and services.

  • In a market,       create demand, and        provide supply.

    In a market, buyers create demand, and sellers provide supply.

  • What determines prices and quantities in a market?

    Prices and quantities in a market are determined by the interaction between buyers and sellers.

  • Define buyer (consumer).

    A buyer (or consumer) is someone whose choices and preferences determine demand for goods and services in a market.

  • What is the difference between a product market and a factor market?

    A product market is where goods and services are exchanged, while a factor market is where factors of production are exchanged.

  • An        market is a place where buyers and sellers interact via the internet, such as Shopee.

    An online market is a place where buyers and sellers interact via the internet, such as Shopee.

  • True or False?

    A market must be a physical place like a building or a shop.

    False.

    In economics, a market can be any system, including virtual platforms, where buyers and sellers meet.