4. Markets and allocation of resources- GCSE Economics (AQA)

A market is

• A place where buyers and sellers come together

• A place where people can buy goods

• A place where buyers and sellers come together and agree a price for the exchange of goods and services

'The price of a good allows some to afford it and others are prevented from purchasing the good' - this describes which function of price?

• Rationing

• Signalling

• Incentive

'The price informs the consumer about the importance of the good/service.' - this describes which function of price?

• Rationing

• Signalling

• Incentive

'The price can encourage a supplier to sell particular goods/services' - this describes which function of price?

• Rationing

• Signalling

• Incentive

Supermarket profits increase as they increase the price of avocados, in response the supermarkets feel confident purchasing more avocado supplies - this describes which function of price?

• Rationing

• Signalling

• Incentive

Plastic carrier bags increase in price from 5p to 10p in supermarkets to inform customers about the importance of re-using or avoiding plastic bags - this describes which function of price?

• Rationing

• Signalling

• Incentive

Ferrari sets it's super car prices significantly higher than the average family car - this describes which function of price?

• Rationing

• Signalling

• Incentive

Which of the following is traded in a product market?

• Fishermen

• Fish

• Boats

• Fishfingers

Which of the following is 'traded' in a factor market?

• Burgers

• Smartphones

• Hot Chocolate

• Iron Ore

Which of the following is 'traded' in a product market?

• Wheat

• Cattle

• Hot Chocolate

• Iron Ore