EMS GRADE 8 MARKETS TOPIC 9 Pg 97

EMS GRADE 8 MARKETS TOPIC 9 Pg. 97 -103

UNIT 1 : TYPES OF MARKETS What is a MARKET ? Any contact/communication between � Potential buyers and potential sellers � Of a good or service In the Past: A market was a specific physical place where buyers and sellers would come together to negotiate the price and exchange their goods

UNIT 1 : TYPES OF MARKETS Nowadays: Markets are not just confined to a specific location due to the aid of technology. THE MARKET FOR GOODS AND SERVICES Businesses produce goods and services These goods and services are sold to households In return for goods and services households pay money to businesses This money becomes revenue for the business

UNIT 1 : TYPES OF MARKETS The interaction between households and businesses in the market for goods and services MONEY BUSINESSES HOUSEHOLDS GOODS AND SERVICES Market for goods and services is defined as any interaction between households and businesses to negotiate the exchange of goods and services. This is also known as the product market

UNIT 1 : TYPES OF MARKETS Consumer prices are determined in the goods and services market. These prices are determined by two factors: The quantity of the good or service businesses produce (supply) The quantity of the good or service households are willing and able to purchase (demand) ACTIVITY 9 – PG 98

UNIT 2: FACTOR MARKETS - LABOUR AND FINANCIAL MARKETS Households own the factors of production: Factors of production � Land, labour, capital and entrepreneurship These factors of production are used by businesses as inputs in the production process Remuneration for the use of the factors of production: Factor of Production Remuneration received Land Rent Labour Wages Capital Interest Entrepreneurship Profit

UNIT 2: FACTOR MARKETS - LABOUR AND FINANCIAL MARKETS The interaction between households and businesses in the factor market FACTORS OF PRODUCTION HOUSEHOLDS BUSINESSES REMUNERATION The Factor Market Factors of production are traded in the factor market. Businesses purchase the factors of production from the households in the factor market Factor markets are also known as resource markets

UNIT 2: FACTOR MARKETS - LABOUR AND FINANCIAL MARKETS Factor Market subdivided into markets for each factor of production: Labour Market – where labour is traded � Jobseekers and employees interact The money and financial market- where finacial capital is traded � Banks and the stock market � People with money to invest interact with people who want to borrow money The land market – where land other natural resources are traded. ACTIVITY 9. 2 pg 101