role of markets

a way of bringing together buyers and sellers to buy and sell goods and services

an economy in which scarce resources are allocated by the market forces of supply and demand

direct use of natural resources including extraction of basic materials from land or sea

all activities in an economy concerned with either manufacturing or construction

all activities in an economy that involve idea of service

where final goods and services are offered to consumers businesses and the public sector

where the services of the factors of production re bought and sold

process where individuals firms or countries concentrate on producing those products that they are best at doing

the giving up of something that an individual or firm has in return for something that individual or firm has in return for something else they want which they don’t have

higher output - total production of goods and services increased

higher productivity - workers become more skilled

bigger market for products so more buyers

larger economies of scale

saves time and money

diseconomies of scale as output increases cost could rise

if one part of process fails then whole production system may stop

may not be able to buy scarce resources

movement of workers - workers may become bored

increased skill so may earn more

workers able to do what the are best at allowing them to earn more

increased job satisfaction

increased standard of living

boredom

deskilling

easier to replace them with machines

region makes best use of its resources

creates jobs for residents near home

development of better infrastructure and supply industries

if demand falls industry may collapse

if resources run out employed in industry become unemployed

loss of advantage as another country or region becomes better at producing

lead to greater efficency and output

more jobs

international trade greater choice of goods

increased choice

government revenue increases leading to better social welfare

over specialisation- economy collapse if demand falls

increased output can lead to unsustainable development

negative externalties could lead to environmental damage