Chapter 8: Market Review

Which of the following that best define the word 'MARKET' in Economics?

• A place where sellers and buyers meet to exchange goods/services in a either physical or virtual market.

• A place where sellers and buyers distribute goods/services and promote the products they sell.

• A place where sellers and buyers meet to bargain and create businesses.

• A place where sellers and buyers meet and negotiate in order to mutually benefit on another.

True or False?

Sellers and buyers MUST see each other in person so that the exchange goods or services can be done.

• TRUE

• FALSE

True or False?

As buyers, we do not need to see overseas sellers in person/physically because we have intermediaries to deal with that.

• True

• False

True or False?

The reason we can trade globally is because of the advancement of technology. Everything is just 'one-click away' - to order goods via applications. Therefore, we don't always need to see the sellers in person.

• True

• False

Which of the following is an example of a traditional market that is also a local market which purpose is to support the local sellers and buyers?

• Honda showroom

• Pasar Johar in Semarang

• eBay

• Pakuwon City Mall

Prices are decided based on the agreement between buyers and sellers. In this case, sellers would agree on a price level if .....

• There are no other similar products available in the market.

• Their products give quality according to price.

• The profit they make from the product(s) they produce is high enough for them.

• The production costs are lower than the competitors' production costs.

See the picture attached. This brand and market can be categorised into several criteria. Which ones are they?

• Consumer goods

• Imperfect competition market

• International

• Producer goods

Which of the following does NOT show the main difference between traditional markets and modern markets?

• Traditional markets prices are cheaper.

• Traditional markets are way much more convenient to shop at in terms of cleanliness.

• People can buy a wider range of products in modern markets.

• People can haggle in traditional markets.

Which of the following are examples of consumer goods and virtual markets, respectively (secara berurutan)?

• IKEA and Starbucks

• Shopee and IFEX

• Amazon and Galaxy Mall

• Ranch Market and Tokopedia

Which of the following is NOT the correct characteristics of imperfect competition market?

• Buyers do not posses full information about the market.

• It is very difficult for companies to enter and exit the market.

• Most of products available are similar or homogenous

• Business or companies can determine the prices.