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Questions and Answers
What is the traditional concept of a market?
What is the traditional concept of a market?
- A set of interacting flows between manufacturers and consumers
- A physical place where buyers and sellers gather to buy and sell goods (correct)
- A collection of buyers and sellers who transact over a particular product
- A group of customers with similar needs and wants
What do manufacturers buy from in the resource markets?
What do manufacturers buy from in the resource markets?
- Finished goods and services
- Resources and labor (correct)
- Public services and tax revenue
- Geographic markets and demographic markets
What is the purpose of the government collecting tax revenues?
What is the purpose of the government collecting tax revenues?
- To provide public services and buy goods (correct)
- To pay manufacturers for labor and resources
- To sell goods and services to consumers
- To provide goods and services to intermediaries
What is a 'need market' in marketing terminology?
What is a 'need market' in marketing terminology?
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What do marketers view as constituting the market?
What do marketers view as constituting the market?
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Economists describe a market as a physical place where buyers and sellers gather to buy and sell goods.
Economists describe a market as a physical place where buyers and sellers gather to buy and sell goods.
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Consumers sell goods and services to intermediaries.
Consumers sell goods and services to intermediaries.
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The government collects tax revenues to provide private services.
The government collects tax revenues to provide private services.
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Marketers use the term market to refer to various groupings of sellers.
Marketers use the term market to refer to various groupings of sellers.
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Each nation's economy consists of separate and independent sets of markets.
Each nation's economy consists of separate and independent sets of markets.
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Study Notes
Types of Markets
- A traditional market is a physical place where buyers and sellers gather to trade goods
- Economists define a market as a collection of buyers and sellers who transact over a particular product or product class
Market Structure
- Five basic markets and their connecting flows exist
- Resource markets (raw material markets, labor markets, money markets) supply manufacturers with resources
- Manufacturers turn resources into goods and services and sell them to intermediaries
- Intermediaries sell finished products to consumers
- Consumers sell their labor and receive money to pay for goods and services
Government's Role in Markets
- The government collects tax revenues to buy goods from resource, manufacturer, and intermediary markets
- The government uses these goods and services to provide public services
Economy as a Collection of Markets
- Each nation's economy and the global economy consist of interacting sets of markets linked through exchange processes
Marketer's View of Markets
- Marketers group customers into various categories
- Sellers constitute the industry, while buyers constitute the market
- Marketers identify need markets (e.g., diet-seeking market), product markets (e.g., shoe market), demographic markets (e.g., youth market), and geographic markets (e.g., Chinese market)
- The concept of markets can be extended to cover voter markets, labor markets, and donor markets, among others
Types of Markets
- A traditional market is a physical place where buyers and sellers gather to trade goods
- Economists define a market as a collection of buyers and sellers who transact over a particular product or product class
Market Structure
- Five basic markets and their connecting flows exist
- Resource markets (raw material markets, labor markets, money markets) supply manufacturers with resources
- Manufacturers turn resources into goods and services and sell them to intermediaries
- Intermediaries sell finished products to consumers
- Consumers sell their labor and receive money to pay for goods and services
Government's Role in Markets
- The government collects tax revenues to buy goods from resource, manufacturer, and intermediary markets
- The government uses these goods and services to provide public services
Economy as a Collection of Markets
- Each nation's economy and the global economy consist of interacting sets of markets linked through exchange processes
Marketer's View of Markets
- Marketers group customers into various categories
- Sellers constitute the industry, while buyers constitute the market
- Marketers identify need markets (e.g., diet-seeking market), product markets (e.g., shoe market), demographic markets (e.g., youth market), and geographic markets (e.g., Chinese market)
- The concept of markets can be extended to cover voter markets, labor markets, and donor markets, among others
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Description
Understanding the concept of markets, including physical markets and economist's definition. Learn about the five basic markets and their connecting flows.
