Economics Chapter: Money and Distribution

Exchanging goods or services directly without using money.

Both parties in a barter trade needing what the other party has.

Everyone agrees to use money as payment.

Money can be divided into smaller parts to represent different values.

The ease with which money can be moved.

Money serves as a medium of exchange, store of value, measure of value, and standard for deferred payments.

Good money is uniform, acceptable, stable, durable, portable, divisible, and scarce.

Legal tender is money that must be accepted as payment of a debt.

Cheques, bank drafts, credit cards, and debit cards are examples of near money.

Money facilitates payments, enabling transactions or exchange, and debt repayment.

A wholesaler that stocks a variety of goods from several manufacturers.

A wholesaler specializing in one type of product.

A wholesaler that offers discounts for cash payments and may assist with transport.

An agent who connects buyers and sellers, earning a commission.

An agent who sells goods on behalf of the owner (but doesn't own them) and earns a profit.

A middleman who buys goods in bulk from producers and sells them in smaller quantities to retailers.

Wholesalers buy large quantities, pay promptly, find markets for products, and provide feedback on customer preferences.

Wholesalers break bulk, offer credit, inform about new goods, provide delivery, and absorb risk.

Direct sales from producers to large retailers, producers' own shops, mail order companies, and direct sales to consumers.

Large retailers buy directly from producers, manufacturers can sell directly to consumers, and specific goods are easier to manage without wholesalers.

Large retailers like supermarkets or department stores that buy directly from manufacturers, taking over the role of wholesalers.

Producers selling their products directly to the consumer, eliminating the need for intermediaries like wholesalers.

Companies that sell products through catalogs or online platforms, bypassing traditional retail stores.

The decreasing importance of wholesalers due to factors like direct sales by manufacturers and the rise of large-scale retailers.

Factors contributing to wholesalers losing their relevance, including manufacturers wanting to control their own distribution, certain goods being better suited for direct sales, and the need for personalized service in some industries.