Give your own definition

for:

• INCOME
• SPENDING
What is the connection
between the two given
terminologies?
 What should we do with
the income received?

• S
• S
• I
WHAT IS THE MEANING
OF THE WORD MARKET?
 A black market is an
underground economy or
shadow economy.
Give an example of products
sold in a black market.
The black market, is it
good or bad for the
economy?
 What are the meaning of
the following words:

BID
BIDDER
 Auction market- type of
market where the highest
bidder will be the
purchaser.
FINANCIAL MARKET
MARKET … A PLACE OR A PRODUCT?
THE PRESENCE OF BUYERS AND
SELLERS IN THE MARKET, IS IT
NECESSARY?
Market structure refers to the nature and
degree of competition in the market for
goods and services.
 The structures of market both for
goods market and service (factor)
market are determined by the nature
of competition prevailing in a
particular market.
4 basic types of market
structures:

Pure Competition/ perfectly competitive

market
Monopolistic Competition
Oligopoly
Pure Monopoly/Monopoly
Why the prices of products in the
market similar or close to each
other?
• “Perfect competition is a market structure
characterized by a complete absence of
rivalry among the individual firms.” 

• Homogeneous products

• Price-takers
Is it possible to have only one
buyer in the market?
MONOPSONY AND
MONOPOLY
MONOPOLY

-NO competition/ sole producer

-NO close substitute
-ONLY one seller
-Many buyers
-ENJOYS the power setting price in the
market
MONOPSONY

-SOLE PURCHASER
MONOPOLISTIC COMPETITION

-many sellers, differentiated products

•Firms in monopolistic competition typically
try to differentiate their products in order to
achieve above market returns.

•Heavy advertising and marketing is

common