Important Questions Class 7 Social Science Social And Political Life Chapter 7

Important Questions Class 7 Social Science and Political Life Chapter 7

Local, state, federal, and international politics are the primary research topics in Social and Political Life. The subject is committed to advancing research methodologies that encourage citizenship and help in our understanding of the institutions, convictions, and connections that constitute public life. The seventh chapter of Class 7 Social Science and Political Life is Market Around Us. The topics covered in Chapter 7 include life’s elements and market-related business cycles. Students will study the weekly market, local shops, shopping centres and malls, chain of markets, marketplaces, and equality in this chapter. Chapter 7 Class 7 Social Science and Political Life Important Questions help students grasp the root of the chapter. Students can easily access all this and more on the Extramarks website.

Students engage in Social and Political Life to learn more about democratic institutions, their power and governance. . We at Extramarks understand the importance and relevance of answering important questions. The Social and Political Life Class 7 Chapter 7 Important Questions are created by Extramarks’sSocial Science experience faculty after consulting the NCERT Textbook, NCERT reference books, past years’  papers, and any other significant sources. Social Science experts at Extramarks have developed step-by-step solutions to help students better understand each chapter. Students may register on the Extramarks website and access Class 7 Social Science and Political Life Chapter 7 Important Questions.

Along with Important Questions Class 7 Social Science and Political Life Chapter 7, students can easily access materials like NCERT Solutions, CBSE revision notes, past year question papers, NCERT books, and more on the Extramarks website.

Important Questions Class 7 Social Science and Political Life Chapter 7 – With Solutions

The Social Science faculty of Extramarks has produced an entire list of Important Questions Class 7 Social Science and Political Life Chapter 7 with the help of multiple sources. The aspects of life and market-related business cycles are among the concepts discussed in Chapter 7. In this chapter, students will learn about the weekly market, neighbourhood stores, malls and shopping centres, market chains, markets, and equality. These questions and solutions help students better comprehend Markets Around Us.

One of the top e-learning platforms in India, Extramarks has earned the trust of millions of primary and secondary school students. The credibility of Extramarks lies in providing the best study material to students through its own repository of resources. Mentioned below are a few Important Questions Class 7 Social Science and Political Life Chapter 7 and their solutions:

Question 1. ‘Buying and selling can take place without going to a marketplace. Explain this statement with the help of examples.

Answer 1. The era of the internet has created a symbolic doorway to fresh possibilities. The requirement for a real market to buy and sell items is no longer necessary.  Nowadays, you may buy them online using cards and online or payment on delivery options. . Place the order, and it will be delivered to the customer’s doorstep. It applies to even neighbourhood Kirana businesses where customers may purchase goods online or use a mobile app and have them delivered.

For instance, you may have seen salespeople from medical firms waiting for the doctor to come to clinics and nursing homes. These persons also work in the retail industry. Therefore, purchasing and selling can be done in various ways without going to the shopping centre. .

Question 2. What are the accounts for those items that the customers or buyers do not utilise directly?

Answer 2. There are many different marketplaces, some of which we are unaware of. A significant amount of merchandise not directly related to our consumers is bought and sold in these markets. A farmer utilises fertilisers that he purchases from a store to develop crops, yet these stores get their fertilisers straight from the factory.

Similarly, a vehicle manufacturer buys gears, motors, gas tanks, etc., from other factories. We typically only see the ultimate product, a car, and not all the purchasing and selling of these supplementary items. .

Similarly, we purchase branded shirts from malls without dealing with the stores that offer the buttons, thread, fabric, or sewing machines needed to produce such shirts. Our discovery of the branded garment at the mall is the final product. .

Question 3. In what ways is a hawker different from a shop owner?

Answer 3. A hawker does not have a permanent place to sell his goods. Instead, they wander around, selling their goods for the smallest possible profit. A hawker can sell as many goods as they like while bringing their service right to the consumers’ doorsteps, and sell it directly. There is no maximum amount of cash required to start a business unit.

A shopkeeper sells their goods out of a permanent shop and a fixed place. . Customers will visit the stores to purchase the goods they want. The area where a shop owner has his or her store determines the size of his or her consumer base. The products sold may be restricted by the kind of store. An electrical business, for instance, will only offer electrical things. A clothing store will only sell garments, etc.

Question 4. How is the market being revolutionised by the internet?

Answer 4. We may purchase a wide range of items online and deliver them right to our doorsteps.s. The high expenditures associated with maintaining physical stores have been eliminated by the use of the internet. Owners of businesses have access to a big customer base. The actual stores are situated in certain areas and can only serve a small number of local customers. However, entrepreneurs and businessmen may contact customers worldwide and sell their services without being constrained by the number of hours, thanks to the internet.

Consumers may shop from their homes without going to the store. Additionally, there are more choices than may be offered in a physical store, however, more lucrative discounts are offered online, and it’s entirely at the discretion of the customer.

Question 5. ‘All persons have equal rights to visit any shop in a marketplace. Do you think this is true of shops with expensive products? Explain with examples.

Answer 5. Yes, that applies to all stores that sell expensive goods. The merchant must put the things out for display even if the customer cannot afford to buy them. Under no circumstances may the shopkeeper pressurise the customer into purchasing the goods. The consumer has complete discretion over that choice. As an illustration, consider what follows:

Sujata and Kavita paid a quick visit to Ansal Mall. They come upon a store selling branded clothes as they make their way around the mall. Despite their admiration for the items’ of branded quality, however, they left the store, searching for another store that offered the same kind of clothing at a more affordable price.

Question 6. Describe Aftab’s morning routine.

Answer 6. Vegetables are the focus of Aftab’s wholesale trading. He begins his morning operations when fresh veggies arrive at the vegetable market at approximately 2:00. At this time, the vegetable market, or mandi, begins with transactions between the buyers and sellers on a whole scale. . The products come from nearby and distant fields in trucks, matadors, and tractor trolleys. He takes part in the auction and selects his purchases. He keeps the veggies at a shop in the market and sells them to hawkers and small shop owners.

Question 7. Explain how a chain of markets is formed. What purpose does it serve?

Answer 7. First, goods are made in factories, farms, and households (depending on the business type). Since the producers of these commodities do not sell in tiny quantities to a single customer, this does not imply that consumers must go to these locations to purchase these things.

Wholesale merchants can help in this situation. They act as the middlemen s for producers and paying customers. Before selling the products to shops, they first purchase them in bulk. The quantity sold will depend on the level of demand. The final customers are the ones to whom these stores will sell it.

Thus, a chain leading from factories to customers may be deduced. A market chain or chain of markets is what this is. This market chain keeps the economy’s supply and demand in balance.

Question 8. Talk about the connection between markets and equality.

Answer 8. There are two types of vendors in the market: one in the weekly market and the other in the shopping centre.

While the other dealer has more money to set up shop, the small trader has less. Their profit margins  depend on the product and profit margin. . The weekly market vendors make less money than a typical store owner in a mall.

Even purchasers are positioned differently. Some people don’t shop in malls because they can’t afford expensive items.

As buyers or sellers, these marketplaces rely on money and cater to a specific audience.

Question 9. Give a description of the items we do not directly use.

Answer 9. The following are the items we do not use directly :

  • Markets are simple for us to recognise.
  • There are also markets like these that we are unaware of.
  • We don’t directly use a lot of the items that are bought and sold.
  • Examples
  • To cultivate crops, a farmer needs fertilisers.
  • He purchases them from the city’s speciality stores.
  • The factories supply them to these stores.
  • A vehicle manufacturer will buy components from other companies, such as engines, gearboxes, gas tanks, axles,  wheels etc are sourced from various places, assembled and finally sold in the market. .
  • Normally, we only see the finished product—the automobile in the showroom—and not the purchasing and selling of these ancillaries.
  • The story is comparable to any other good.

Question 10. Describe the various techniques for buying and selling products.

Answer 10. Various methods of buying and selling products:

  • People can purchase and sell various commodities and services in various markets.
  • These marketplaces are all located in the same area.
  • They work at specific times and in a specific way.
  • Nowadays, it’s not always necessary to visit the market to buy products.
  • The phone and the internet may be used to place orders for several items.
  • Deliveries are made to customers’ homes.
  • Sales personnel visit clinics and nursing homes to take orders for the delivery of drugs.
  • Selling products is another activity salespeople engage in. Therefore, there are several methods used for both purchasing and selling products.

Question 11. How are chain markets organised?

Answer 11. Market chains have both apparent and invisible ties:

  • Wholesalers purchase goods in bulk from manufacturers.
  • Every city has regions that serve as wholesale markets, from which other merchants receive their supplies.
  • Smaller commodities are purchased by retailers from wholesalers and transported across the city.
  • To sell these products in specific areas, the roadside hawkers buy them from a merchant or a wholesaler.
  • Large items were purchased by wholesale traders from factories or manufacturers and kept in godowns.
  • In this manner, a network of marketplaces is established through which the products ultimately travel to get to us.
  • Similarly, some services are also offered, such as when product representatives from various businesses visit merchants or occasionally the customer directly to market their goods.

The following objectives are served by Chain of Markets:

  • Wholesalers and factories are not required to locate customers for their products.
  • Many individuals gain from this.
  • Small quantities of the items that consumers require are provided.
  • They don’t have to travel far to buy their items because they can get them close by.
  • Factories or distributors do not sell small amounts of products. It helps manufacturing owners and wholesalers save time and effort.

Question 12. Where do you think shop owners get their products from?

Answer 12. Shop owners get their products from:

  • Products are made in factories, on farms, and in private residences.
  • We don’t purchase them straight from the farm or the manufacturer.
  • Producers are unwilling to offer us products in small quantities, such as one kg.
  • Or one cup made of plastic.
  • Traders are the individuals who stand between the manufacturer and the end consumer.

The wholesale dealer starts by making bulk purchases of the items.

Examples:

  • A vegetable wholesaler does not purchase a few kilogrammes of produce. He purchases them in quantity. He offers them for sale to shops.
  • The wholesale dealer sells veggies in large quantities to a store. He offers them to customers in small quantities and at a premium price.

Question 13. Give examples of shopping outlets and malls.

Answer 13. Shopping Centres and Malls:

  • In urban areas, there are additional marketplaces.
  • They have several stores, sometimes known as shopping centres.
  • There are enormous, multi-story buildings containing stores with multiple floors that are common in urban areas..
  • They are known as Malls..
  • We may purchase both branded and unbranded stuff at these urban marketplaces.
  • They have dining establishments and restaurants.
  • They have parking at several levels and in the basement.
  • There could be multiplex theatres, eating joints, restaurants, play stores etc..

Question 14. Compare and contrast a weekly market and a shopping complex on the following:

Market Kind of goods sold Prices of goods Sellers Buyers
Weekly market
Shopping Complex

Answer 14.

Market Kind of goods sold Prices of goods Sellers Buyers
Weekly market Items of everyday use such as groceries, vegetables and fruits, cloth items, utensils, etc. Not expensive / Low Small traders and hawkers Local people from lower / middle-income group
Shopping Complex Branded and expensive products such as readymade clothes, consumer appliances, leather items, perfumes, etc. Moderately to highly expensive Big companies and traders People from upper class who can afford these items

The above section of Important Questions Class 7 Social Science and Political Life Chapter 7 covers all the chapter’s important concepts.

Benefits of Solving Important Questions Class 7 Social Science and Political Life Chapter 7

Students can find Social and Political Life to be overwhelming and difficult to remember. Students are recommended to go through the  Extramarks Important Questions Class 7 Social Science and Political Life Chapter 7 to help them prepare for the exams. These important questions help the students fully comprehend the chapter, and even learn about their mistakes, and how to write precise answers according to the exam pattern. Students gather confidence and memorise well by answering important questions and reviewing their solutions.

Mentioning below are some benefits of solving Important Questions Class 7 Social Science and Political Life Chapter 7:

  • Important Questions Class 7 Social Science and Political Life Chapter 7 covers the concepts of the entire chapter- Markets Around Us. Regular tests and revisions make them aware of their mistakes through guided practice and help to get better grades.
  • These solutions help students save time while preparing for the upcoming examination and cover the entire chapter. It provides all the information and students need not look for answers elsewhere. That itself reduces stress and anxiety to a great extent
  • Students can entirely rely upon these important questions as these are made following the NCERT book and the latest guidelines and curriculum laid by CBSE which are curated by the in-house subject matter experts of Extramarks.

One of the top e-learning platforms in India, Extramarks has earned the trust of millions of primary and secondary school students. The credibility of Extramarks lies in providing the best study material to students through its own repository of resources. To speed up their learning and improve their academic performance, students must sign up at Extramarks’ website now to begin their preparation without any further delay. Extramarks provides comprehensive learning solutions for students from Class 1 to Class 12. Our website has abundant resources, along with important questions and solutions. Students can easily click on the links given below to access some of these resources:

Q.1 Who is a whole sale trader?

Ans

Whole sale trader is one who buys things in large quantities. For example the rice whole sale trader will not buy a few kilos of rice, but will buy rice in large lots of 50 to 100 kilos. He sells these whole sale items to the traders.

Q.2 Who is a retailer?

Ans

The trader who purchases goods from the whole sale trader and then sells to consumers is called retailer. This could be a trader in a weekly market, a hawker in the neighbourhood shop or a shop owner in a shopping complex. Retailer is the actor in the chain of market who directly deals with the consumer.

Q.3 Retail price is higher than the wholesale price. Why so?

Ans

The wholesaler sells to a retailer at a price higher than that charged by the producer. The retailer sells to the ultimate consumer at a price higher than the wholesale price. Hence, prices are usually higher in retail markets than in wholesale markets.

Q.4 What are shopping complexes?

Ans

In urban areas, there are markets that have many shops, such a group of shops is called a shopping complex. These shopping complexes are multi-storeyed, air-conditioned buildings with shops on different floors, known as malls. Shopping complexes are growing in cities, since they offer everything under one roof.

Q.5 Who are traders?

Ans

The people in between the producer and the final consumer are the traders.

Q.6 What is a weekly market?

Ans

A weekly market is held on a specific day of the week. Weekly markets do not have permanent shops. Traders set up shops for the day and then close them up in the evening. They may set up their shops at a different place the next day.

Q.7 Explain the meaning of following terms:

a)Mall b)Wholesale c)Chain of markets

Ans

Mall: This is an enclosed shopping space. This is usually a large building with many floors that has shops, restaurants and, at times, even a cinema theatre. These shops most often sell branded products.

Wholesale: This refers to buying and selling in large quantities. Most products, including vegetables, fruits and flowers have special wholesale markets.

Chain of markets: A series of markets are connected like links in a chain because products pass from one market to another.

Q.8 If a producer of mustard oil wants to open a production unit,which of the following would be a good location for him/her? (A) Close to mustard fields (b) Close to a marketplace (c) Close to a residential areaGive reasons for your choice.

Ans

The producer of mustard oil should select a location closer to mustard fields and to the market place.
Reasons
I. The important raw material for oil production is mustard. Sufficient amount of mustard seeds is needed for the smooth functioning of oil production. It will be easy for the oil company to produce oil if it is closer to the mustard fields.
II. After the production of mustard oil, the producer has to find a market place to sell his product. If the company is close to the market, it will be easy to transport the products to the market and therefore, can be easily accessed by the consumer.

Q.9 Explain the distribution channels in marketing process.

Ans

There are two types of distribution channel in marketing process: direct channels and indirect channels. If the producer sells his goods directly to the consumer, it is an example of direct channel. There are two types of direct channels: through travelling salespersons and through retail shops. The producers employ salespersons to contact potential buyers. Through direct selling, the salespersons tell the customers about the features of the product and how to use it. The other way is that the producer may also set up retail shops in different localities and sell goods directly to the consumers.

Q.10 What is the main function of the Confederation of Indian Industry?

Ans

The main function of Confederation of Indian Industry (CII) is to create and sustain an environment that fosters industrial growth. It also seeks to establish partnership between industry and government in different sectors.

Q.11 What is the purpose of setting the Minimum Support Price?

Ans

The government buys from farmers at a minimum support price, even if the market price is lower. This assures farmer producers of fair earnings.

Every year MSPs for major agricultural products are announced, which are fixed after taking into account factors such as cost of production, change in prices of inputs, demand and supply and cost of living.

Q.12 What is a market?

Ans

A market is an environment that allows buyers and sellers to exchange goods, services and information. Market interactions are defined by demand and supply.

Q.13 What are the factors that determine the price of a commodity in the market?

Ans

The price of a good depends on its demand and supply. If the demand is more and the supply is less, the price is likely to be high and vice versa.

Q.14 Define credit.

Ans

Credit is the lending of money/resources by a party to another. It is a loan for which the lending person or agency may charge an interest (i.e., commission).

Q.15 Define auctioning.

Ans

Auctioning is a public sale in which property or goods are sold to the highest bidder (i.e., person offering the maximum price).

Q.16 What is the basis on which a shopkeeper decides which brand to sell and which not?

Ans

The main consideration for a retailer while keeping a brand is profit. He would emphasise on selling a brand that gives him maximum profit. The percentage of profit differs from brand to brand.

Q.17 Define inflation.

Ans

Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. It is a decline in the value of money.

Q.18 Name one successful entrepreneur from India.

Ans

Mr. Sunil Bharti Mittal, a successful entrepreneur from India, took the risk and started mobile services with the brand name ‘Airtel’ in 1995 when there was no player in the market. Today, Airtel is the largest private telecom company in India.

Q.19 Who is a street vendor?

Ans

A street vendor is a person who offers goods or services for sale to the public without having a permanent built up, but with a mobile stall. They are mobile in the sense that they move from place to place carrying their wares on push carts or on cycles.

Q.20 Highlight the objective of National Policy for Urban Street Vendors.

Ans

The objective of National Policy for Urban Street Vendor is to provide a supportive environment for earning livelihoods to the street vendors, as well as ensure absence of congestion and maintenance of hygiene in public spaces and streets.

Q.21 Who are the key players in the chain of market?

Ans

Producers, wholesale traders, retailers and the consumer are the key players in the chain of market.

Q.22 What is Minimum Support Price (MSP)?

Ans

It is the minimum price for a product, fixed by the government and supported by payments to small producers in case the market price falls below the specified minimum price.

Q.23 What is profit?

Ans

Profit is the gain from selling a commodity. It is the difference between revenue and cost.

Q.24 What is the difference between domestic and international goods?

Ans

Domestic goods are manufactured in one’s own country, while foreign goods are bought from other countries. Domestic goods are exported abroad while foreign goods are imported from abroad.

Q.25 Who acts as intermediaries between the producers and consumers in the market?

Ans

The link between producers and consumers is established through intermediaries (middlemen). The middlemen may be wholesalers and retailers who buy and resell goods for profit. They may be agents, who help in making deals, arrange for storage of goods and so on, for a commission.

Q.26 Name the successful Indian entrepreneur who gave the following quote “Think big, think fast, think ahead. Ideas are no one’s monopoly”.

Ans

The quote “Think big, think fast, think ahead. Ideas are no one’s monopoly.” was given by the late Dhirubhai Ambani. He was India’s business tycoon who started the Reliance Industries in Mumbai in 1966.

Q.27 The price of a product increases every time the product changes hands. Why so?

Ans

This happens because every time the product is sold, the seller tries to make a profit. Example: a producer usually sells to a wholesaler at a price which is usually higher than the production cost.

Q.28 Can you name three food retail players in the Indian market?

Ans

Godrej foods, Reliance and Subhiksha are some of the major food retail players in the Indian market

Q.29 What is the motto adopted by Confederation of Indian Industry for 2010-2011?

Ans

‘Business for livelihood’ is CII’s motto for the year 2010-2011. For faster and inclusive growth, the focus is on four key enablers, i.e., education, employment, innovation and entrepreneurship.

Q.30 What do you mean by Federation of Indian Chambers of Commerce and Industry (FICCI)?

Ans

FICCI is an association of business organisations in India. Established in 1927, it is the voice of India’s business industry and works closely with the government on policy issues related to business and economy.

Q.31 State the importance of Retailers Association of India.

Ans

a) It strives to adopt best practices in the retail industry to the benefits of both the retailers and customers.

b) It provides one voice to the Indian retailers and seeks to create an environment fit for the growth of retail industry.

Q.32 Why do traders form associations?

Ans

From medieval times, traders formed associations or groups based on common interests. It gives them unified voice and enables them to bargain collectively as a group with the government and other stakeholders in the industry.

Q.33 What are fair price shops?

Ans

Fair price shops are government regulated shops which sell essential items like grains and kerosene. These shops sell goods at reasonable prices to people below poverty line.

Q.34 Does market only involve exchange of goods?

Ans

There are several exchanges that take place in the market, besides goods. Services like transport, banking and information technology are crucial to the functioning of any market.

Q.35 If you are a retailer selling Chinese goods, would you go to China every month? Where would you get these goods from?

Ans

There are several wholesale traders who visit China every month and bring goods in bulk. These wholesale traders are located in specific markets known for certain goods. Retailers can buy from these wholesale traders and save their time. These wholesale traders have contacts with producers in different countries and get good deals from them.

Q.36 Is there any advantage of urban vending?

Ans

Studies have shown that street vendors constitute approximately 2% of the population of a metropolis. Urban vending is an important source of employment. It provides ‘affordable’ services to the majority of urban population.

Q.37 Why is a wholesale trader necessary?

Ans

The people between the producer and the final consumer are wholesale traders. They buy goods in large quantities and sell them to different retailers. It is with the help of wholesale traders that goods reach faraway places.

Q.38 What are the various expenses incurred by permanent shops?

Ans

Permanent shops incur a lot of expenditure – they have to pay rent, electricity, taxes to the government. They also have to pay wages to workers and spend on maintenance. There is also accidental cost involved which reduces the profit of the trader.

Q.39 What is the difference between retail and wholesale?

Ans

Wholesale involves buying goods in large quantities and selling them in large quantities usually to customers who buy goods to resell in the retail market to the ultimate consumer.

Retail involves buying products in large quantities and selling them to consumers in small quantities for personal and household use.

Q.40 What are the essentials of entrepreneurship?

Ans

Planning, market research, generate wealth, foreseeing the risk involved are some of the things to be kept in mind by an entrepreneur.

Q.41 Who is an entrepreneur? What is his most important trait?

Ans

Any person who starts and operates a business is an entrepreneur. The most important trait of an entrepreneur is profit maximisation. Profit is the main driving force in any business. Other traits include risk taking and competitiveness.

Q.42 If you are a wholesale trader, what would be your necessary business requirements?

Ans

Wholesale involves buying goods in large quantities and selling them in large quantities. For this, a wholesale trader needs fairly large investment and transport facility. He also requires a storehouse to store the goods and some helpers as guards.

Q.43 What is purchasing power?

Ans

Purchasing power is the buying power of the consumer. It is the quantity and quality of goods and services that people can afford to buy. The purchasing power of people declines over time as the living cost increases.

Q.44 What is the difference between branded and non-branded goods?

Ans

Branded goods are standardised goods with uniform price and quality. Whereas non-branded goods are not standardised and there may be variation in price and quality. As compared to non-branded goods, fewer people can afford branded goods. Branded goods are often promoted by advertising, unlike non-branded.

Q.45 Why are goods cheaper in the weekly market?

Ans

Things in weekly markets are available at cheaper rates. This is because the expenses incurred in weekly markets are much less as compared to permanent shops. Traders in the weekly markets do not have to pay taxes, hire workers and pay for electricity. Thus, the investment is less, so is the price of goods. Also, prices are low because of close competition.

Q.46 Sumit is suffering from jaundice and he can’t go out. He wants to buy a leather bag for himself. Is there any way that he can buy one without leaving his home?

Ans

With the advancement in technology, a number of branded goods can be bought and sold without going to the market. Sumit can select the brand online and place an order over the phone or visit the company website and book the product. He can use his credit card to make an ‘online purchase’.

Q.47 The Delhi government passed an order to the MCD and NDMC to remove all street vendors and hawkers before the Common Wealth Games. Is there any right that the vendors can invoke to get justice?

Ans

Right to livelihood is an important part of fundamental right to life. Article 39 (a) of the Indian Constitution provides that all citizens have equal right to livelihood. The Supreme Court ruled that any displacement of street vendors must also make provisions for their rehabilitation.

Q.48 Are there any rights of the consumers?

Ans

Consumer rights help to ensure fair trade practices and consumer’s access to correct information in the marketplace. These include:
a) Right to be protected from hazardous goods and services.
b) Right to be fully informed about the performance and quality of the goods and services.

Q.49 Is there any disadvantage suffered by the traders in the weekly market?

Ans

Weekly markets have a large number of shops selling the same goods which means there is competition among them. If some trader charges a high price, people would move to another shop where the same thing may be available more cheaply or where the buyer may bargain and bring the price down.

Q.50 Profits are not equally distributed in the market. Explain.

Ans

This is because a retailer who sells to the ultimate consumer makes the largest profit. The manufacturers and farmers/producers earn the least. This unequal distribution of profits increases economic and social inequality among the people in the chain of market.

Q.51 Which player in the chain of market understands the consumer’s needs best?

Ans

In a market, the retailers interact directly with the consumers. They understand and respond to the consumer’s needs for goods and services. The price of a commodity depends on its demand and how much the consumers are willing to spend for a certain quality of good.

Q.52 Imagine your birthday around the corner and you have invited 30 friends. You want to buy 30 pencil boxes as return gifts for your friends. Recalling the chain of market, who would you buy these gifts from to get a reasonable price?

Ans

When one has to buy large quantities of the same product, it is always better to buy from wholesale traders since they sell in bulk. As we buy more quantities of a product, the price can be bargained and hence, the consumer can get a good deal and save money. Also, the retailer would have added his own profit in the price charged, which is now eliminated.

Q.53 What is the difference between weekly markets and permanent shops? Give three points.

Ans

Following are the three points of differences between weekly market and permanent shops:

a) In weekly markets, traders set up shops only once a week, while shops in authorised buildings make permanent markets.
b) In weekly markets, goods are non-branded, while in permanent shops one can find both branded and non-branded goods.
c) Shops in permanent markets incur more expenses since they hire workers, pay rent and various taxes. All these taxes are transferred to the customers. Therefore, their goods are also expensive as compared to weekly markets.

Q.54 Internet has brought a revolution in the way market functions. Comment giving example.

Ans

With advancements in technology, the functioning of market has changed. In urban areas, people can enter the markets without stepping out of their homes via the internet. They can compare and select the product by visiting the company’s website. They use their credit cards to make ‘online purchases’. This phenomenon of buying and selling over the internet is called e- commerce. Ex: Flipkart Amazon

Q.55 What are the various challenges faced by India’s domestic market?

Ans

Domestic market sells goods produced in the country, i.e., domestic goods, like India produces large quantities of cotton which is a domestic good. Domestic market faces competition from international or foreign goods, especially when these goods are cheaper in price. Example: Indian markets are flooded with Chinese toys because of which the demand for toys made by Indian manufacturers has declined.

Q.56 The role played by the hawkers in the economy needs to be given due credit. Do you agree?

Ans

The role played by hawkers in the economy needs to be given due credit, but they are considered unlawful entities and are subjected to continuous harassment by police and civic authorities. This is reported to be continuing even after the ruling of the Supreme Court that “if properly regulated, the small traders on the sidewalks can add to the convenience of the general public by making available ordinary articles of everyday use for a comparatively lesser price”. Forced eviction of hawkers constitutes violation of right to livelihood.

Q.57 Why do people prefer to go to a weekly market?

Ans

A weekly market is so called because it is held on a specific day of the week. These are set up in the neighbourhood streets and sell essential goods like groceries and other household items at cheaper prices. People prefer going to these markets to buy things of daily use. They are usually located at walking distance and the customers do not have to go different areas to buy different things.

Q.58 What is the role of banks in markets?

Ans

Banks plays a very important role in any market and caters to all the actors in the chain of market – producers, wholesalers, retailers and consumers. The first three may need loan from banks for various purposes to expand their business, while the consumers also take loans to buy heavy goods like vehicles, computers etc. Banks also offer online banking services for making online purchases and other business transactions.

Q.59 Across the country, various tribes visit Delhi every year to showcase and sell their exclusive crafts in exhibitions. However, the urban buyers often bargain with them. Is this fair?

Ans

Tribes are categorised as economically marginalised and backward group. However, their craftsmanship is incredible. Tribal groups in India are famous for their intricate weaving and painting. At exhibitions in urban cities, people are often seen bargaining for tribal products. They do not appreciate the craftsmanship and take advantage of the ignorance among tribes and seek bargains. Because of such unfair trade practices, many NGOs are now supporting these tribes and help them to sell their goods at deserving prices.

Q.60 Is the system of credit offered by the shops in the neighbourhood useful? Are there any problems faced?

Ans

Shops in the neighbourhood are near our homes. Because of frequent acquaintances, the shopkeepers also provide goods on credit. But the problem involved in the system of credit is that the shopkeeper faces a risk of losing his money. The customer’s identification proof may not be correct. Many people who live as tenants may shift without notice and without clearing their dues with the shopkeeper. The shopkeeper will have to keep an account of all the purchases of each customer during the month.

Q.61 Why do think superstores like ‘Big Bazaar’ and ‘More’ sell the same goods at a relatively lower price?

Ans

Superstores are large retail stores that sell wide range of goods like groceries, clothes, toys, utensils, etc. They buy goods in bulk, and therefore get them at a reasonable price from their suppliers. It is a known fact that when you buy a certain commodity in large numbers, you are likely to get a better bargain on the price. As a result, these stores also offer various schemes and discounts to their consumers to gain attention and consumer loyalty.

Q.62 Can economically marginalised and poor be restricted from entering in malls? Give reason for your answer.

Ans

India is a democratic country and gives equal rights and respect to all citizens irrespective of their social and economic status. According to Article 15 of the Indian Constitution, no one can be restricted from entering any public place like parks, restaurants, malls and temples. Such restriction is a form of discrimination which is unfair and undemocratic.

Q.63 When you go to restaurants, you are often asked whether you would like bottled water or tap water. What is the difference between the two? Should you be paying extra for bottled water?

Ans

Bottled water is branded while tap water is same as water available at home. Bottled water promises high quality of safe drinking water. It is priced more than the tap water in restaurants. Restaurants should serve purified tap water for safety of consumers. Safe drinking water is a human right and restaurants must follow the quality norms. Therefore, both tap water and bottled water are same except that bottled water is branded, so we have to pay more for it.

Q.64 Is it fair to bargain in a weekly market?

Ans

Weekly markets consist of small and marginal traders from poor backgrounds. Their profit is very marginal since weekly markets have a large number of shops selling the same goods and this means there is lot of competition. Bargaining with them is not fair since their goods are already very cheap. If customer’s further demand slashes in price, traders in such markets will not be able to survive.

Q.65 How is the shopping experience in a mall different from that of a weekly market?

Ans

Markets in urban areas have large multi-storied air conditioned buildings with shops on different floors, known as malls. Shops in malls are permanent and sell both branded and non-branded goods, while in weekly markets, goods are non-branded and therefore cheap. Weekly markets are crowded and one has to walk a lot while malls are spacious with coffee shops, escalators, lifts and parking lots. In weekly markets there are problems like congestion and pollution, while malls are air conditioned and pollution free.

Q.66 People often bargain in weekly markets but never in a mall. Why so?

Ans

People often bargain in a weekly market but not in a mall, since goods in the weekly markets are non-branded. In malls where goods are branded and standardised, customers refrain from bargaining. Also in a weekly market, large number of shops are selling the same goods, which means there is competition. Consumers take advantage of the situation and bargain by pitting one trader against the another.

Q.67 How is the price for a particular good/commodity decided?

Ans

Price setting is a crucial aspect of any business. Price depends on the demand and supply of a particular good in the market. If the demand is more and the supply is less, the price is likely to be high and vice-versa. Also, it depends on the percentage of profit that the trader seeks for himself. If the trader is confident of the quality and uniqueness of a particular good, he may set a higher price for it. On the other hand, if it is a common commodity available with other traders too, competition will bring the price down.

Q.68 A lot of invisible trade takes place in the market. Explain with an example.

Ans

Buying and selling takes place in different ways, not necessarily through shops in the market. There are market exchanges that we may not be aware of. This is because a large number of goods are bought and sold that we don’t use directly. For example, a car factory purchases engine, gears, petrol tanks, axles, wheels etc. from various other factories. This trade of raw materials often goes unnoticed and we only see the final product, i.e., the car in the showroom.

Q.69 What is media imperialism?

Ans

It refers to one way flow of information from western countries to developing countries, characterised by imposition of western culture and values on the developing world. As a result, the culture and identity of smaller nations is endangered.

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FAQs (Frequently Asked Questions)

Chapter 7 of Class 7: Markets Around Us Social science studies diverse market structures and associated subjects. Terms like a customer, producer, wholesaler, and retailer are defined in this chapter. We study several marketplaces, including stores, shopping centres or malls, and weekly markets. Today, there are possibilities for home delivery as well as digital markets. The chapter helps us understand the place and purposes of various market participants. To learn more about the chapter, students can refer to Extramarks Important Questions Class 7 Social Science and Political Life Chapter 7.

The chapter examines how there are several intermediaries between the producers and the customers. Thus we don’t purchase goods and commodities straight from the factory or the farm. Finally, products are transported via a market chain to reach customers. For instance, farmers must first extract and sell cotton to the mill as the raw material to produce a cotton shirt. The factory employees then use various manufacturing processes to create a cotton shirt. Retailers acquire this shirt in bulk from the wholesale market at a lower price. The shops subsequently charge the consumers additional costs for these shirts. To gain a deeper perspective on the chapter, students can refer to Extramarks Important Questions Class 7 Social Science and Political Life Chapter 7.