Markets, Factor/Product Markets and Economic Sectors
Every time you buy something you use a market. Learn what a market does, the difference between factor and product markets, and the three economic sectors that make up the economy.
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Free interactive practice at using the material, which is what the marks are for.
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What is a market?
Every time you buy or sell something, you use a market. A market is simply where buyers and sellers meet and agree a price. Markets matter because they help decide how scarce resources are shared out. This module looks at the kinds of market and at the three sectors that make up the whole economy.
Factor and product markets
Four terms unlock this whole topic.
Match the market word
- Market
- Factor market
- Product market
- Scarce resources
- Where buyers and sellers agree a price
- The market for workers and other inputs
- The market for finished goods and services
- Limited resources that markets help share out
Factor or product?
A firm hires workers to make its products. The market where it hires those workers is an example of what?
- A factor market
- A product market
- A supermarket
- A stock of goods
Factor vs product markets
The two kinds of market swap who is buying and who is selling.
Match the sector
- A farmer
- A factory worker
- A shop assistant
- A physical good
- Works in the primary sector
- Works in the secondary sector
- Works in the tertiary sector
- A physical product you can touch
The UK is a service economy
In the UK the tertiary sector, which provides services, is by far the largest, and the primary sector is the smallest. Most people work in services such as shops, schools, hospitals and banks.
Markets, factors and sectors
A _____ is where buyers and sellers agree a price. The market for workers is a _____ market, while a supermarket is a _____ market. Farming is in the _____ sector, and in the UK the _____ sector is the largest.
Primary sector jobs
Which of these jobs are in the primary sector? Choose all that apply.
- Farming
- Fishing
- Coal mining
- Car manufacturing
- Banking
Which are services?
Tap the two that are services, not goods.
- A haircut at the barber.
- Advice from a lawyer.
- A loaf of bread.
- A new pair of shoes.
From field to shop
Put a loaf of bread through the economy in the right order.
- A farmer grows the wheat
- A mill turns the wheat into flour
- A bakery bakes the bread
- A shop sells the bread
- A customer buys it
Good or service?
Which of these is a service, not a good?
- A bus journey
- A bicycle
- A sandwich
- A book
Follow the fish
The same fish passes through three businesses. Choose the correct sector at each stage.
- A company catches fish out at sea. Which sector is it in?
- A factory turns the fish into fish fingers. Which sector is that?
- A restaurant cooks and serves the fish to diners. Which sector is that?
Markets and the three sectors
Explain how a market helps to allocate scarce resources, and describe the three economic sectors with an example of each.
- Explain what a market does with price
- Name the three sectors: primary, secondary and tertiary
- Give one example of a job in each sector