In economic analysis, markets are classified along multiple structural dimensions including transaction timing, exchange media, regulatory compliance, and market power. Match each market scenario on the left with its correct economic classification on the right.
- A cocoa exporter signs a contract in January fixing the purchase price for 50 metric tonnes of cocoa beans to be delivered in July.Forward/Futures Market
- Retail consumers purchase electronics through a digital platform where buyer and seller interact exclusively via networked software.Virtual/E-Commerce Market
- Traders exchange foreign currency at unauthorized street venues above official price ceilings to bypass central bank rationing.Parallel/Black Market
- A state agro-processing factory serves as the sole purchaser of raw sugarcane harvested by hundreds of independent local farmers.Monopsony Market
Answer
The correct matches pair each scenario with its analytical classification: 1) Future delivery contract matches Forward/Futures Market; 2) Internet platform transaction matches Virtual/E-Commerce Market; 3) Unofficial currency exchange under price controls matches Parallel/Black Market; 4) Single buyer of agricultural output matches Monopsony Market.
Each economic situation corresponds strictly to its formal classification dimension: timing (forward/futures market), medium of exchange (virtual market), regulatory legality (parallel/black market), and buyer concentration (monopsony market).
Step-by-Step Solution
Key Concept
Classification of Markets by Timing, Channel, Legality, and Buyer Concentration