Lesson 10: Types of Markets
Lesson objective
At the end of this lesson, you will be able to:
- Define a market.
- Distinguish among the financial market, goods and services market, and labour market.
Brainstorming Question
How do you describe the term “market”?
Key Terms and Concepts
- Market
- Goods and services market
- Labor market
- Financial market
- Online Market
Is an institution where two parties can meet to facilitate the exchange of goods and services.
The goods and services market is where households purchase consumable goods and services and businesses sell their goods and services.
The labor market is a market in which employees provide labor services and employers provide employment opportunities for labor.
A financial market is any place where securities, currencies, bonds, and other financial assets are traded between two parties.
An online market is a digital platform where buyers and sellers conduct transactions over the internet, allowing for the purchase and sale of goods and services without physical interaction
Market
A market is an institution where two parties can meet to facilitate the exchange of goods and services. The parties involved are usually buyers and sellers. The market may be physical, like a retail outlet, where people meet face-to-face, or digital, like an online market, where there is no direct physical contact between buyers and sellers. There are many types of markets, but in this section, we will focus on three key types: the goods and services market, the labour market, and the financial market.
Goods and Services Market
The goods and services market is where households purchase consumable goods and services and businesses sell their goods and services. This market includes physical stores, the Internet, and any other place where consumer goods and services are exchanged.
Labor Market
The labour market is a market in which employees provide labour services and employers offer employment opportunities. The labour market operates on both macroeconomic and microeconomic levels. It includes daily labourers, domestic workers, skilled workers, and professionals.
Financial Market
A financial market is any place where securities, currencies, bonds, and other financial assets are traded between two parties. This market is the backbone of capitalist societies, providing capital formation and liquidity for businesses. Financial markets can be physical or digital. Examples include stock markets, bond markets, and currency exchanges.