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
According to economists, a market refers to a/an _____ comprising of various buyers and sellers carrying out business transactions.
C. Entire area
D. Online platform
Primary market is a type of market based on _____.
A. Market structure
D. Commodities bought and sold
E. Channel of distribution
F. Internet and world wide web
The above diagram on the quantity supplied against a change in price is _____.
C. Perfectly Elastic
D. Perfectly Inelastic
E. Zero Elastic
F. Unitary Elastic
The rate at which an increase in the price of a product translate into the product's increased production and availability in the market is termed _____.
C. Demand Elasticity
D. Supply Elasticity
E. Demand Curve
F. Supply Curve
Concerning demand curve, which of the following statement is incorrect?
A. It is a graphical represention of a table showing the price of commodities and quantity demanded
B. It can be an individual demand curve
C. The x-axis shows the price of commodities
D. The price and quantity demanded are expressed on different axis of the graph
E. It can be a market demand curve
F. All the options are correct
A table that shows the price of a commodity and the quantity demanded is termed _____.
A. Price table
B. Demand table
C. Demanded-price table
D. Demand preference table
E. Demand graph
F. Demand schedule
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
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The retail market is a market whereby the sellers (called the retailers) buy goods in lesser quantities from the wholesaler (or even the manufacturer) and must sell in units or bits to the final consumer.
The goods sold and services rendered in a retail market are termed consumer goods and services.
Note: Nowadays, certain companies are beginning to act as both producers and retailers. In this way, they cut out the wholesalers from the market scene. The company Apple is an instance here.
Apple have some of its retail outlets (shops) around the world where they sell directly to their customers.
In another instance, a manufacturing company may authorize another company to sell its products directly to the consumers. Amazon and Walmart are examples of retailers in this instance.
Amazon buys directly from manufacturing industries and sell directly to the consumers.
Other examples of large retailers (who buys directly from manufacturers) include Jumia, ShopRite, Alibaba and Konga.
The large retailers who buys directly from manufacturers are often regarded as certified retailers. In this case, the buyers are assured via a warranty which contains an effective return policy from the manufacturer through the retailer. For this reason, it is considered a better option to buy from large retailers, especially goods that come with exorbitant prices.
In general, the large retailers are not the only option open to consumers in the market. In fact, we have more of small to medium sized retailers scattered in our environment. These will include:
The woman who sells foodstuffs by the roadside.
Please read on Business Structure (Sole Proprietorship, its Advantages and Disadvantages) here.
Peddlers: A peddler is a person who moves from on place to another in order to sell their products (usually specific products) to consumers. They may also be referred to as hawkers or pitchmen.
Recreational shopping and window shopping.
The sale of consumer goods in the supermarkets and shops within our community.
The sale of goods by the road side or in traffic.
Young boys and girls hawking fruits on the streets. It is important to state that teenage hawking is a condemnable act and is considered as one of the harmful traditional practices in Africa.
Please read on Harmful Traditional Practices in Nigeria here.
These above instances are classic examples of retailers who will typically buy their goods from the wholesalers.
Concerning retailers, there is this concept termed electronic retailing (or e-retailing).
Electronic retailing is the process of selling goods and services through the internet. Most of the large retailers typically operates an e-retailing system. Through this process, they deliver the purchased goods and services to the appropriate consumer either at a specified location or their place of residence.
Note: At the time of writing this article, Amazon is the largest retailing and e-retailing organization in the world. It's founder is the richest man in the world during this time.
Unlike the producers and wholesalers, a retailer will often sell a variety of products in his or her shop.
Note: A retailer may also be referred to as merchants in some cases.
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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: