2281 · 2.1
The market system — FAQ
Frequently asked questions for 2281 The market system. Direct answers first, then deeper explanation — then practise with marking.
Does a market have to be a physical place?
No. A market is any arrangement that lets buyers and sellers trade. Online shopping, currency trading and the job market are all markets without a single location.
Is a question about the price of petrol micro or macro?
Microeconomics, because it concerns one product market. A question about the overall rate of inflation, which petrol prices feed into, is macroeconomics.
Why are there no pure market or pure planned economies?
Every government provides some goods (defence, law courts) and regulates some markets, and even the most planned economies have some private trading. The useful distinction is how far each economy leans towards markets or planning.