3.1

Question 1

what is a market

Answer 1

A market refers to any case where people exchange goods and services

Question 2

what is the economic problem of scarcity

Answer 2

The economic problem of scarcity is when people have limited resources (being materials to make the products) but unlimited wants.

Question 3

what are the ten kinds of markets
R
P&H
W
A
F E
C
L
F&B
S
S&L

Answer 3

• retail
• properties and housing
• wholesale
  -Agricultural
  -foreign exchange
  -commodity
• labour
  -fianance and banking
  -stock
  -sport and leisure

Question 4

• redraw the diagram (source3.1.2)
• explain how it works
  arrow means leads to

Answer 4

unlimited wants+limited resources =scarcity—> choices
—->what to produce, how to produce, and for whom to produce

Question 5

When does scarcity occur?

Answer 5

scarcity occurs when the want for someting is greater than than the supply of the resource.