Markets and market structures

1.What was a market in ancient time?

The term market, as used by economists, is an extension of the ancient idea of a market as a place where people gather to buy and sell goods. In former days part of a town was kept as the market or marketplace, and people would travel many kilometres on special market-days in order to buy and sell various commodities.

2.What is a modern market?

Today, however, markets such as the world sugar market, the geld market and the cotton market do not need to have any fixed geographical location. Such a market is simply a set of conditions permitting buyers and sellers to work together.

3.When is a market created?

Whenever people who are willing to sell a commodity contact people who are willing to buy it, a market for that commodity is created.

4.How do different markets operate?

In a perfect market, communications are easy, buyers and sellers are numerous and competition is completely free. In a perfect market there can be only one price for any given commodity: the lowest price which sellers will accept and the highest which consumers will pay.

5.How do economists classify markets?

Economists classify markets according to conditions that prevail in them. markets can be classified according to certain structural characteristics that are shared by most firms in the market. Economists have names for these different market structures: pure competition , monopolistic competition, oligopoly, and monopoly.

6.What is a market structure defined by?

Markets can be classified according to certain structural characteristics that are shared by most firms in the market. Economists have names for these different market structures: pure competition , monopolistic competition, oligopoly, and monopoly.

7.What are the names of difference market structures?

Economists have names for these different market structures: pure competition , monopolistic competition, oligopoly, and monopoly. Although in a perfect market competition is unrestricted and sellers are numerous free competition and large numbers and sellers are not always available in the real world.

8.What is a pure competition?

Pure competition is a market situation in which there are many independent and well-informed buyers and sellers of exactly the same economic products.

9.What is a monopolist competition?

Monopolistic competition is a market in which many firms are selling similar( but not identical) products.

10.What is oligopoly as a market structure?

Oligopoly is a market dominated by a few large firms. Oligopoly is the control of all or most of a business activity be very few companies, so that other organization cannot easily compete with them.

11.What is monopoly?

Monopoly is a market in which is only one seller.

MONEY

1.What is money?

Basically, money is what money does. This means that money can be any substance that functions as a Medium of Exchange, a Measure of Value, and a Store of Value.

2.How does money function?

Money function as a Medium of Exchange, a Measure of Value, and a Store of Value.

3/What is money as a medium of exchange?

As a medium of exchange, money is something generally accepted as payment for goods and services

4.What is money express as a measure of value?

As a measure of value, money expresses worth in terms that most individuals understand/

5.How does money function as a store of value?

Money also serves as a store of value. This means goods or services can be converted into money hat is easily stored until some future time.

6.What forms of money are in use in the world today?

The different forms of money are in use in the United States today. The most familiar are coin and currency.

7.What does the term currency refer to?

The term currency refers to paper money issued by government.

8.What is the difference between coin and currency?

The term currency refers to paper money issued by government but the term coin refers to metallic forms of money.

9.What are the most important characteristics of modern money?

Modern money is very portable, very durable and is not as stable in value.

10.Why does value of modern money change in value?

Modern money is not as stable in value, because the money supply often grew at a rate 10 to 12 per cent a year was considered as major cause of inflation.