(Note: market imperfection is not synonymous with market failure.
See market failure for a distinction) One in which the following conditions, necessary for
a perfect market, do not hold: (1) a homogeneous product, (2) a large number of buyers
and sellers, (3) there is freedom of entry and exit for buyers and sellers, (4) all buyers and
sellers have perfect information and foresight with respect to the current and future array
of prices; (5) in relation to the aggregate volume of transactions, the sales or purchase of
each market agent are insignificant, (6) there is no collusion amongst buyers and sellers,
(7) consumers maximize total utility and sellers maximize total profits, (8) the
commodity is transferable. If any one of conditions (1) to (8) are not fulfilled a market is
to some degree imperfect.
Establishing domestic industries behind tariff and quota barriers.
The objective is to replace imports by domestic production.
The amount of funds, goods, or services received by an individual, corporation,
or economy in a given time period.
This a good or service on which less money is spent as ones level of
income increases. An example is small grains (millets and sorghums) in urban areas. As
the income of a household increases less money is spent on small grains for consumption
and more money is spent on rice or maize.
The general increase in the price level of all goods and services in an economy
from one period to another.
Law of demand
The widely accepted view that, other things being equal, more of a
good will be bought the lower is its price, and the less will be bought the higher is its
Any context in which the sale and purchase of goods and services takes place.
There need be no physical entity corresponding to a market. See section 2.3 for more
information about what a market is and what activities they perform.
: These are government policies or practices by marketing agents that
result in an unclear signal between the producers and consumers.
The inability of a system of private markets to provide certain goods
either at all or at the most `optimal' level. In general, market failure arises because of (1)
non excludability and/or (2) non rival consumption of a good. Non excludability means
that individuals who have not paid for a good cannot be prevented from enjoying its
benefits because the cost of doing so would be too high. If a good is non rival, its
consumption by one person does not preclude its enjoyment by anyone else. Clean air is
an example of a good that has both non rival and non excludable characteristics.
Marketing board, marketing parastatal
Semi private government office that manages
commercial and usually security stocks.