Understanding Markets: Definition and Function

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Questions and Answers

Match each market classification with its corresponding description:

General market = Sells all types of commodities. Specialized market = Deals with a specific commodity. Local market = Area covered is limited to nearby villages; often involves perishable goods. Regional market = Covers multiple districts; often involves food grains or fruits at the state level.

Match each type of market based on location with its defining characteristic:

Village market = Confined to a small village or group of villages; transactions among local buyers and sellers. Primary wholesale market = Located in big towns; pools agricultural commodities from village markets. Secondary wholesale market = Located in district headquarters; deals with major agricultural commodities such as rice and pulses. Terminal market = Located in big cities or state capitals; well-organized with modern marketing methods.

Match the classification of markets by time span with their primary characteristics:

Short period market = Supply of commodities is fixed; price variation is based on demand. Long period market = Durable commodities are transacted; prices are governed by supply and demand. Secular market = Permanent markets that deal with manufactured goods; characterized by export and import transactions. Cash Market = Transactions involve immediate cash payments for goods.

Match the market types with their corresponding descriptions based on the nature of the transaction:

Cash Market = Transactions involve immediate cash payments for goods. Forward Market = Involves future sales and purchases of commodities at the current time; often used for hedging. Regulated market = Governed by statutory market committees; marketing costs and fees are standardized. Unregulated Market = Operates without supervision; producers are vulnerable to exploitation in weighment and payments. Signup and view all the answers

Match each type of market competition with its defining characteristic:

Perfect Competition Market = Many sellers and buyers transacting a homogeneous product; no control over price. Imperfect Competition Market = Products are similar but not identical; prices are not uniform; restrictions on movement of goods. Commodity market = Deals with the buying and selling of physical goods. Capital market = Involves shares, securities, and bonds. Signup and view all the answers

Match the market classifications based on visibility with their characteristics:

Black market = Goods are not placed in shops but kept in godowns; goods are delivered on cash transaction when there is a short of supply. Open market = Transactions can take place in visible markets between buyers and sellers and the price is determined by demand and supply. Wholesale Market = Large quantities are sold in an amount the traders can agree on together. Retail Market = Retailers will sell commodities to consumers in small amounts as the consumers require. Signup and view all the answers

Match each description to the market that best fits based on the description of number of commodities:

General Market = a market where varying commodities such as food grains to textiles are sold in a large manner Specialized Market = a market that concentrates and deals with one specific good and commodity to sell within it Regional Market = A market that works in transactions within a few districts with the goods being notified commodities together. National Market = A market where area of operation will be an entire country that involves commodities that are having a high demand. Signup and view all the answers

Match each description to the market that best fits based on the description of Area Covered:

Local Market = A market that is limited to a group of nearby villages with perishable commodities transacted. Regional Market = A market that covers 4-5 districts. National Market = A market where area of operation will be an entire country. International Market = A market where commodities are sold in nations of the world Signup and view all the answers

Match each description to the market that best fits based on the description of the markets location:

Village Market = The area of operation is confined to small village or group of villages Primary wholesale market = Located in big towns. Secondary wholesale market = Located in districts headquarters Terminal market = Located in big cities/State capital Signup and view all the answers

Match each description to the market that best fits based on the description of Government Interventions:

Regulated market = statutory market committees govern its actions, government makes marketing acts and Marketing costs, Margins and Fees are standardized. Unregulated market = conducted without supervision, exploits middle man to a maximum extent Wholesale Market = When large quantities are brought and sold in the market Commodity market = It deals with buying and selling of commodity Signup and view all the answers

Match a description of the law of demand to a description of supply:

Price of a good increases = the quantity supplied increases Price decreases = Quantity demanded increases vice versa = vice versa Signup and view all the answers

Match a classification of markets by Time Span to their correct description:

Short Period Market = Held for a brief period with Commodity supply fixed Long Period Market = Transacted with Durable Commodities Secular Market = Deals with export and import transactions Village Market = Transacted with goods and services among local sellers and buyers Signup and view all the answers

Match these descriptions that describe market equilibrium:

Equilibrium = Where quantity demanded and quantity specified are at one value Increasing demand = higher equilibrium price and quantity Decreasing demand = Lower equilibrium price and quantity Decreasing Supply = Higher price, lower quantity Signup and view all the answers

Match each definition to the commodity it describes:

Normal Good = demand increases as income rises (e.g., branded clothing) Inferior Goods = demand decreases as income rises (e.g., instant noodles). Substitute Goods = are those that can replace each other (e.g., Coke and Pepsi). Complementary Goods = are those that are used together (e.g., cars and gasoline). Signup and view all the answers

Match each description with the type of market based on volume of business:

Wholesale Market = Large quantities of a commodity are sold for trading. Retail Market = Smaller amounts of commodities are sold to consumers. Secular Market = Well Organized permanent Markets Cash Market = Involve Immediate Cash in good transactions Signup and view all the answers

Flashcards

Market

A place where goods and services are exchanged, consisting of buyers and sellers.

Marketing

The economic process of exchanging goods and services between producers and consumers, with value determined by money price.