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2.1 - Coggle Diagram
2.1
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What is a Market?
Where buyers and sellers come together to buy and sell goods and services. It can be a physical or virtual environment.
A market economy relies on the forces of supply and demand to determine the allocation of scarce resources as well as government intervention.
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What is specialisation?
When individuals, firms, regions or counties concentrate on producing the goods and services they have an advantage in making it more efficient and often increasing output. This can apply to all factors of production
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What is a factor market?
The market where the services of the factors of production are bought and sold. Price for each factor is based on supply and demand and is a derived demand.
What is exchange?
Giving up something an individual has in return for something the need but do not possess. All economic behaviour involves the exchange of one scarce resource for another;today this is usually money.
