ECONOMICS LESSON 4

MARKETS
      WHERE EXCHANGE HAPPENS

STOCK EXCHANGE-
       A PIECE OF PAPER THAT GIVE YOU OWNERSHIP OF SOMETHING
ex: Ebay-buy and sell nothing
 
GLOBAL COMMUNITY

2 TYPES OF MARKETS
                 FREE - NO RESTRICTIONS - WORKS
   COMMAND - BARRIERS AND RESTRICTIONS- NEVER WORKS
ex of restrictions:
       taxes, minimum wage,wage price control

* FREE MARKETS- SETS WAGES AND PRICES

 WAGES OF PRICES ARE PRECIEVED VALUES

                    PRICES
1. PROVIDES INFO
2. ACTS AS A RATIONING  MECHANISM
3. ARE INCENTIVES

*BUYERS COMPETE AGAINST BUYERS
*SELLERS COMPETE AGAINST SELLERS
 
VALUE- WHAT ITS WORTH