Topics in EconomicsAdvantages of Inflation Disadvantages of Inflation Concept of Inflation in Economics Scheme of work for Economics, SS1, First Term Scheme of work for Economics, SS1, Second Term Scheme of Work for Economics, SS1, Third Term Functions of the Wholesaler Advantages and Disadvantages of the Wholesaler Wholesale Market: Who is a Wholesaler? Characteristics of the Wholesaler Retail Market: Who is a Retailer and Examples of Retailers Market: Types of Market Market - What is a Market in Economics? Elasticity of Supply: Types of Supply Elasticity Supply Elasticity: Elasticity of Supply explained Demand Schedule - Types of Demand Schedule Demand: What is Demand? Law of Demand Concept and Types of Cost Supply, Supply Curve and Law of Supply What is a Black Market, Its advantages and disadvantages
Academic Questions in Economics
The concept of Ceteris Paribus Assumption in economics states that _____.
A. Supply and Demand are antagonistic
B. When given two choice of similar products with the same price (assuming all other factors are constant), you will prefer to buy that with a lower price
C. Supply and Demand are agonistic
D. When given two choice of dissimilar products with the same price (assuming all other factors are constant), you will prefer to buy that which you need most
E. When given two choice of similar products with the different prices (assuming all other factors are constant), you will prefer to buy that with a lower price
F. When given two choice of dissimilar products with the different prices (assuming all other factors are constant), you will prefer to buy that with a lower price
The willingness of a person to buy a specific quantity of goods or services at a given price and time is termed _____.
A. Scale of preference
B. Economies of scale
C. Opportunity Cost
Costs generally treated as expenses in business are termed _____.
A. Fixed cost
B. Variable cost
C. Sunk cost
D. Direct cost
E. Private cost
F. Outlay cost
When an entrepreneur pays cash (money) for materials needed for production, such money is termed as an _____ cost.
A government mandated maximum price for goods or services is termed _____.
A. Price height
B. Price maxima
C. Price ceiling
D. Price level
E. Price finale
F. Price top-zone
The quantity of supplied services or goods will increase as the price increases and they will decrease as the price decreases provided all other factors remain constant.
The above statement is attributed to the _____.
A. Law of price increase and price decrease
B. Law of product quantity
C. Law of demand
D. Law of supply
E. Law of quantity demanded and supplied in relation to price
F. Law of purchases on services and goods
The following statements are true concerning explicit opportunity cost except _____.
A. They are recorded in the accounts book
B. It is a type of cost
C. They may also be referred to as 'out of pocket' cost
D. They are utilized as factors of production
E. Money spent on wages, salaries and raw materials are examples of explicit opportunity cost
F. Explicit opportunity cost are always utilized for investment
Needs / Wants
Which of the following statement is incorrect concerning the table?
A. Ipod is the least important need of the individual
B. If the individual has 200,000 Naira at hand, then the laptop, iPad, smart watch and iPod will all be considered as opportunity cost
C. If the individual has 480,000 Naira, he or she will purchase all the items in the table
D. Console game is the most important need of the individual
E. The table shows a scale of preference
F. The individual needs an ipod
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Market can be categorized into various types based on the following criteria:
Commodities that are Bought and Sold.
Channel of Distribution. They include the wholesale market and retail market.
Please read on the Concept of a Retail Market here.
Market Structure. (Degree of Competition and Prices).
In this article, we will discuss on the types of market based on commodity bought or sold.
Some overlaps may occur during a careful analysis of the various types of market based on the commodities bought and sold.
The market types (based on commodities bought and sold) are explained below:
1. Primary Products Market: Primary products refers to agricultural produce in their unprocessed (raw) form. In a primary market, unprocessed agricultural products are bought and sold.
Whenever we buy foodstuffs in their raw form, we may likely purchase them from the primary products market.
Similarly, manufacturing industries will usually buy their raw materials (primary products) from this market.
2. Consumer Goods Market: This is a market where consumer goods (processed food and other finished products) are bought and sold.
Products like creams, clothes, shoes, processed food and books are bought in the consumer goods market.
3. Black Market: This is a market setup for the purpose of selling various products outside the government's rader.
Oftentimes, illegal products like firearms, drugs and various computer malware are purchased here. This purchases may be done through a medium termed as dark web.
Crypto currencies are well accepted as means of payment in the black market.
Note: A black market has its advantages and disadvantages.
4. Auction Market: An auction market is one where a seller will only sell a product to the highest bidder.
Auction markets are usually conducted when one is willing to put out an iconic and legendary material for sale.
Note: Auction market may also be carried out in various religious launching like harvest and bazaar.
5. Knowledge Market: Information and knowledge on various products are exchanged in the knowledge market. (This is similar to the functions of search engines like Google).
Functionally, knowledge markets can also stimulate the desire to satisfy the demand of something that's yet to exist. (Search engines may not be able to offer this knowledge).
Len Academy is an example of a knowledge market that offers all its services for free. Some other platforms do act as knowledge markets but not without making some form of payments; (which may not be a bad idea).
Also, websites that allow readers to post questions while other readers profer answers to such questions are also considered as knowledge markets.
Note: An individual's data may be collected in the knowledge market.
6. Physical Market: A physical market is a market whereby the buyers physically meet the sellers before purchases can be made.
Supermarkets, shopping malls and the general community market are examples of physical market.
Note: The buyer will usually pay via cash or Point of Sale (PoS) to the seller in a physical market.
7. Virtual or Non Physical Markets: A market is considered to be virtual when the buyers and sellers transact business withing physically meeting each other.
The internet provides an excellent platform for the workings of a virtual market. In this case, such business is done online. Examples of virtual market include Jumia, Amazon, eBay and web host providers.
As a web developer, I have never visited the company that host my websites. I only communicate with them online while aslo making all my payments online.
Note: Online payment solutions are usually integrated into the web application (website) in order to facilitate payments (from the buyer to the seller). The buyers ought to be careful when making payments online due to the emergence of internet fraud.
8. Labour Market: The labour market provides a platform where various job seekers (graduates and non-graduated) link up with the employers of labour in order to be hired.
In developing countries, the labour market will always appear to be jam-packed with large number of job seekers searching for the few available jobs. To this end, the Government of such countries will need to make favourable policies, while also establishing the basic infrastructure towards attracting foreign investors into their country.
9. Factor Market: The factors of production are sold in the factor market. Factors of production include:
10. Financial Market: Financial markets are involved in the exchange of liquid assets; (that is, money).
Note: Banks are generally involved in the financial market.
Financial market can be put into the followings:
I. Stock Exchange Market: This is a market that provide investors with an opportunity to buy shares, stocks and securities.
Examples of Stock Exchange Markets are the Nigerian Stock Exchange (NSE), Nasdaq, New York Stock Exchange, London Stock Exchange, Euronext Paris, SIX Swiss Exchange, B3, Canadian Securities Exchange and so on.
II. Bond Market: In a bond market, buyers and sellers are involved in the exchange of debt securities usually in agreement with the conditions of a bond.
A bond (in bond market) is a contract made by two or more parties in order to make one of the party return money with interest at fixed intervals.
In a bond market, If a debtor fails to return the money at the appropriate time or interval, whatever consequent action agreed in the contract between both parties would be effected. An example of such consequent action could be the sale of the debtor's properties.
III. Foreign Exchange Market: Currency are traded in this market.
Note: Usually, one person buys or exchanges a currency with the equivalent of another currency.
Since the foreign exchange market focuses a lot on currency exchange, it's can also be referred to as a currency market.
Forex (which means Foreign Exchange) is an example of a Foreign Exchange Market.
IV. Capital Market: This is a market that serves short and long term loans to individuals and institutions.
Capital Market will usually serve the needs of entrepreneurs who are in need of capital to start up a business.
V. Money Market: This is a market where short term loans are granted.
Microfinance banks are considered to be an important aspect of the money market especially in the rural areas of developing nations. This is so because they will often give out short term loans to those who require it.
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Alfred Ajibola is a Medical Biochemist, a passionate Academician with over 7 years of experience, a Versatile Writer, a Web Developer, a Cisco Certified Network Associate and a Cisco CyberOps Associate.
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Amazing facts in Economics
NOTABLE POINTS IN Economics
A Black market is said to take place when there is illegal buying and selling of goods and services.
Black markets usually take place outside the government's rader and without government's knowledge so as to avoid tax or any other government regulations.
Black market presents the avenue for government prohibited goods like hard drugs, war weapons and firearms to be bought by criminals.
A black market can also occur on the web for cyber criminals or those who are involved in computer hacking. To achieve their malicious aim, these individuals will go into the dark web and purchase or rent their respective hacking tools for a fee. Normally, payments are made in crypto currencies.
However, a black market isn't generally considered as bad. Infact, it has its advantages and disadvantages.
Below are some advantages of black market:
Goods and services are sold at a cheaper price.
It helps some people make plenty of money.
The illegal sales of human organs, for example, the sale of human kidneys have aided in saving some lives.
Some people actually depend on black market for their daily bread.
Some of the proceeds from black market may been utilized towards the economic growth of a Nation. For instance, schools and hospitals had been from money made from black market.
The law of supply states that:
The quantity of the supplied services or goods will increase as the price increases and they will decrease as the price decreases provided all other factors remain constant.
These constant factors are very important when stating the supply law. They include:
The price of Input resources
The kind of technology used during production
The number of suppliers
The number of buyers; and so on.
A graph that shows the relationship between the price of a product or service, and its quantity supplied is the supply curve.
Supply curve can be defined as a graphical representation of the direct relationship between the prices of goods and services and the quantity supplied (of such goods and services) within a particular period of time provided all other factors remain constant.
Consider the table below:
Needs / Wants
The above table shows us what a scale of preference would look like.
A scale of preference can be defined as the list of a person's needs or wants written in an order of importance.
You will observe that the person puts his most important needs or wants at the top of the list. Further down the list are his less important needs.
Now, let's imagine that this individual has 170,000 Naira to spend. According to the above scale of preference, the followings can be deduced;
A phone will be considered to be the most important; and it costs 50,000. He buys the phone.
A console game according to this person is next in importance; and it costs 120,000. He buys the console game.
Another question worth asking is:
What happens to his other needs?
This is where the term 'Opportinity Cost comes into play.
Scale of Preference can be defined as the list of a person's needs or wants written in an order of importance. 📜✍️
When you have a limited amount of money and could only buy some of the items on your list (the top items on the list); then the remaining items that you didn't buy will be generally considered as your opportunity cost.
Opportunity cost can be defined as the value of the best alternative that a person could have achieved or bought but couldn't achieve after the best choice had been achieved.
Opportunity cost are of two types. They are: