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“An employee questions that which is already part of the business.”
“An entrepreneur questions the reasons for things not being part of the business.”
Products and services are bought and offered for sale on the “market”. Most people think of the market as an informal shopping centre where you can buy fruit, vegetables and handmade articles. But a “market” does not have to be a fixed place. Wherever there is contact between buyers and sellers, we have a market. This contact does not necessarily have to take place physically between persons. It could happen by telephone, computer or even through an advertisement in a newspaper.
The word “market” is also used to refer to a group of buyers. The market for school clothes, for instance, comprises the learners at school and their parents.
1. Different types of markets
Consumers buy goods and services from manufacturers at the goods and services market .
Manufacturers , again, buy the four factors of production ( land, capital, labour and entrepreneurial skills ) from the factors market . These four factors are required for producing goods and services.
2. Study the following representation and:
| Learning Outcomes(LOs) |
| LO 1 |
| THE ECONOMIC CYCLEThe learner will be able to demonstrate knowledge and understanding of the economic cycle within the context of ‘the economic problem’. |
| Assessment Standards(ASs) |
| We know this when the learner: |
| 1.3 explains the concepts ‘free’ and ‘economic’ (scarce) goods, and the influence of demand and supply on market prices. |
| 1.4 describes and debates the power relationships, economic rights and responsibilities between: |
| 1.4.1 consumer and producer; |
| 1.4.2 employer and employee; |
| 1.4.3 government and business. |
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