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Find NCERT Solutions for Class 7 Civics Chapter 7 ‘Markets Around Us’ here.
Textbook Page 85
1. In what ways is a hawker different from a shop owner?
Answer:
A hawker does not have a fixed shop from where he sells goods, instead he moves from street to street pushing a loaded handcart and shouts to advertise his goods. He sells vegetables, fruits and other cheap items of daily use at low cost because most customers bargain with him to reduce the prices. Since he does not have to meet overhead expenses like rent, electricity charges, or pay salesmen to help him out, he makes a marginal profit.
A shopkeeper has a permanent shop where he displays his goods. He can stock a large variety of products which he sells at a fixed price. Customers come to the shop regularly and since he knows them well, he even gives them credit which must be paid off at the beginning of the following month. He incurs overhead expenses like rent, electricity charges, wages of his assistants, so his prices are higher. His profit margin is also higher than a hawker.
2. 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:
| Market | Kind of goods sold | Prices of goods | Sellers | Buyers |
| Weekly market | A variety of goods of everyday use like vegetables, fruits, groceries, cloth items, utensils etc | Prices are affordable because there is competition as many shops sell the same goods, so common people can afford them | Small traders and hawkers | Ordinary people belonging to economically weaker sections and some middle-income people |
| Shopping complex | Branded and non-branded costly items such as readymade clothes, footwear, leather items, home appliances, books, food items like pizza, burger, ice-cream etc. | Most items are expensive. Only the well -off who have disposable income can afford to buy them | Big businesses And traders | Middle class and upper-class customers who have ready surplus funds are frequent buyers. |
3. Explain how a chain of markets is formed. What purpose does it serve?
Answer:
A chain of markets is formed when goods from a producer reaches the ultimate consumer. A series of markets are connected like links in a chain because products pass from one market to another.
Goods are produced in factories, on farms or in homes. It is not practical for a consumer to go to the source of production to buy a small quantity needed for his consumption. So, the wholesale trader steps in to fill the gap.
These traders are the intermediaries between the producer and the consumer. The wholesale traders purchase goods in large quantities directly from the producers and then sells the goods to retailers according to demand. The retailer in turn sells it to the final consumer.
Thus, a chain is set up from the factories or farms to the consumer. This is known as the chain of markets or market chain as seen in the flowchart below:
Factories > Wholesale Trader > Retailer > Consumer
It is through these links of traders that goods reach faraway places. The market chain maintains the flow of money and it ensures that things are easily available. It promotes co-ordination in society.
4. ‘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:
Yes, the statement is equally true for shops with expensive products. A consumer can visit any shop. The shopkeeper has no right to turn away any person even if he suspects that the person does not have money. The shopkeeper cannot force the customer to buy any article. The decision to buy or not to buy is up to the consumer. We can understand it more clearly through an example. Kavita and Sujata went to Ansal Mall out of curiosity. While wandering around, they strolled into a shop. They looked at some branded dresses and then left after seeing the exorbitant prices. Although the guard was tempted to stop the girls, he did not because he knew it would be wrong to do so.
5. ‘Buying and selling can take place without going to a marketplace.’ Explain this statement with the help of examples.
Answer:
The advent of the internet has revolutionised the concept of a marketplace. Online shopping has grown by leaps and bounds because of the convenience. One can just place an order online on one of the shopping portals like Amazon, Myntra, Flipkart, or Big Basket and pay through debit or credit cards, internet banking or payment apps, and the goods are delivered at one’s doorstep.
Even some local kirana stores accept orders via the web or mobile apps and deliver the groceries.
Sometimes, the agents of companies visit the homes of the consumers directly to market their goods.
Sales representatives of big pharmaceutical companies who visit doctors to demonstrate samples of their medicines exemplify another kind of indirect marketing because doctors do not buy the medicines themselves, but prescribe them to patients who ultimately buy the medicines.
Thus, buying and selling takes place in different forms which neither require the physical presence of a shop or market nor direct contact between the buyer and seller.
Solutions for In-Text questions of NCERT Class 7 Civics Social and Political life-ll Chapter 7 ‘Markets Around Us’
Text Book Page no 78
1. Why do people go to a weekly market? Give three reasons.
Answer:
People frequent weekly markets for the following reasons:
1. They can get most things they need like fresh vegetables, groceries, clothes, or utensils in one place.
2. The goods at the weekly market are cheaper than those in local shops.
3. Many shops sell the same things, so consumers benefit by bargaining with them to
get the best deal.
2. Who are the sellers in a weekly market? Why don’t we find big business persons in these markets?
Answer:
Small traders who cannot afford the establishment cost of running a permanent shop find weekly markets an ideal place to sell their wares.
Big businessmen have permanent shops in market places or shopping malls which consumers visit regularly, so they do not need to sell their goods in the weekly markets.
3. Why are things cheap in the weekly market?
Answer:
Goods are cheap in the weekly markets because:
(i) The small traders do not have to pay rent, electricity charges or taxes to the government.
(ii) They do not engage assistants because they are helped by their family members.
(iii) Many traders sell the same goods, so competition between them also drives the prices down.
4. Explain with an example how people bargain in the market. Can you think of a situation where the bargain would be unfair?
Answer:
People bargain in the market to bring down the prices.
For example, Sujata wants to buy carrots but she thinks the price of Rs 100/- per kg which is quoted by the seller is too high. She may walk away or she may get the seller to reduce the price by offering him a sum of say Rs 60/- per kg. The seller argues that his cost price itself was Rs 65/- per kg, so he gives her a counter offer of Rs 70/- per kg. Sujata finds it reasonable so she buys a kilogram of carrots happy to have made a good bargain.
It would be unfair to bargain at fixed price shops or when goods are being sold at throwaway prices because they will rot if not sold immediately.
Text Book Page no 79
1. Why did Sujata carry a notebook? Do you think this system is useful? Can there be problems?
Answer:
Sujata carries a notebook for keeping a record of the things she buys because she purchases goods on credit .
This system is useful for both the buyer who can pay at ease at the beginning of the following month and the seller who secures a loyal customer.
Problems arise if the buyer cannot settle dues in time, or if the seller overcharges for allowing credit.
2. What are the different kinds of shops that you find in your neighbourhood? What do you purchase from them?
Answer:
There different shops in my neighbourhood are grocery, stationery, bakery, vegetable stalls, fruit stall, dairy, ice cream parlour, medicine shop and so on. I purchase all items of daily use from these shops like bread, milk, vegetables, fruits, spices and all other grocery items, as well as medicines from them.
3. Why are goods sold in permanent shops costlier than those sold in the weekly markets or by roadside hawkers?
Answer:
Goods sold in permanent shops are costlier because the shopkeepers incur expenses on rent, electricity, government fees and wages of shop asssitants – all of which are factored into the cost of goods. But sellers in weekly markets or hawkers do not have to spend on such overheads so they can sell their goods at lower prices.
Text Book Page no 80
1. Why do you think the guard wanted to stop Kavita and Sujata from entering the shop? What would you say if someone stops you from entering a shop in a market?
Answer:
The guard wanted to prevent Kavita and Sujata from entering the shop because judging from their modest appearance he thought that they would not be able to afford the expensive goods on display.
If I were prevented from entering a shop, I would demand to see the shop policy and then contact the media to expose such discrimination.
2. Why do people not bargain in shops located in malls whereas they bargain in weekly markets?
Answer:
Shops located in malls are fixed price shops generally selling branded goods at a fixed profit margin. The buyers are high profile people who are brand conscious and willingly buy at the prices quoted. It is beneath their dignity to bargain.
Moreover, these shops are manned by employees who do not have the authority to reduce prices.
Whereas weekly markets are frequented by the lower and middle class buyers who always look for bargains. The shopkeepers themselves conduct sales so they are able to sacrifice their profit margin if needed.
3. How do you think your neighbourhood shop gets its goods? Find out and explain with some examples.
Answer:
My neighbourhood shop stocks a wide variety of miscellaneous items which are supplied by different distributors. There is a market chain in operation. Individual producers sell goods to wholesale traders who in turn sell either directly to retailers or to other traders known as distributors. The distributors then sell them to retailers like my neighbourhood shop.
4. Why is a wholesale trader necessary?
Answer:
Wholesale traders are necessary because we cannot buy goods directly from factories and farms which are located in faraway places, and the producers are not interested in selling small quantities to us. So the wholesaler steps in and buys goods in bulk from the producers, stores them in his warehouse and then sells them to retailers or other traders known as distributors. Hence wholesalers are necessary because they are the connecting link between the producers and retailers.
Extra Questions NCERT Class 7 Civics Social and Political life ll Chapter 7 ‘Markets Around Us’
A. Multiple Choice type Questions (MCQ)
1. People go to weekly markets because___________
(i) they sell expensive branded goods
(ii) they are held on all days of the week
(iii) they can buy from wholesale traders
(iv) none of the above
2. The advantages of weekly markets is _________
(i) they specialise in one kind of merchandise
(ii) the goods are cheap
(iii) Bargaining is possible
(iv) Only (ii) and (iii) above
3. If you needed milk, which shop would you visit in your neighbourhood?
(i) grocery store
(ii) ice cream parlour
(iii) dairy
(iv) chemist
4. What are the advantages of neighbourhood shops?
(i) They are located near our homes
(ii) they are open every day
(iii) the buyer and seller are known to each other so goods are sold on credit if needed
(iv) All of the above
5. The trader who sells the goods to the consumer is ________.
(i) the wholesale trader
(ii) the distributor
(iii) the retailer
(iv) None of the above
6. For online shopping we need ___________.
(i) a mobile phone/computer
(ii) an internet connection
(iii) debit/ credit card or a payment app
(iv) all of the above
7. The people in between the producer and the consumer are the _________.
(i) middlemen
(ii) wholesale traders
(iii) hawkers
(iv) advertising agencies
8. What takes place in wholesale markets?
(i) Goods are sold to traders
(ii) Goods are sold at very high prices
(iii) Goods received from producers
(iv) Both (i) and (iii) above
9. Where are goods sold at the lowest price?
(i) weekly market
(ii) wholesale market
(iii) neighbourhood market
(iv) shopping Mall
10. What happens when things are sold?
(i) It encourages production
(ii) opportunities are created for people to earn
(iii) the economy receives a boost
(iv) All of the above
Answer:
1. (iv) none of the above
2.(iv) Only (ii) and (iii) above
3. (iii) dairy
4. (iv) All of the above
5. (iii) the retailer
6. (iv) all of the above
7. (ii) whole sale traders
8. (iv) Both (i) and (iii) above
9. (ii) wholesale market
10. (iv) All of the above
B. Fill in the blanks with suitable words from the box to complete the following sentences:
| wholesale | chain | specific | retailer | cheaper |
1. A weekly market is so called because it is held on a ________ day of the week.
2 .Many things in weekly markets are available at _________ rates.
3. The ____________ trader first buys goods in large quantities.
4. The trader who sells goods to the cosumer is the ________.
5. When we purchase , we may not be aware of the _______ of markets through which these goods travel before they reach us.
Answer:
1. A weekly market is so called because it is held on a specific day of the week.
2. Many things in weekly markets are available at cheaper rates.
3. The wholesale trader first buys goods in large quantities.
4. The trader who sells goods to the consumer is the retailer.
5. When we purchase , we may not be aware of the chain of markets through which these goods travel before they reach us.
C. Match the words in column A with those in column B
| A | B |
| Weekly market | Branded goods available |
| Wholesale market | May provide goods on credit |
| Shopping mall | no direct contact between buyer and seller |
| Online shopping | Bargaining is customary |
| Neighbourhood shops | Buying and selling in large quantities |
Answer:
| A | B |
| Weekly market | Bargaining is customary |
| Wholesale market | Buying and selling in large quantities |
| Shopping mall | Branded goods available |
| Online shopping | no direct contact between buyer and seller |
| Neighbourhood shops | May provide goods on credit |
D. State whether the following statements are TRUE or FALSE:
1. Large traders sell their goods in weekly markets.
2. Shopping Malls are large multi-storied buildings with shops on different floors selling branded
and unbranded goods, restaurants, and even a multiplex to entertain people.
3. Branded goods are expensive because they are promoted through costly advertising campaigns.
4. For buying and selling to take place, shops or a market place have to be present.
5. It is through the chain of marketing that goods produced in one place reaches people everywhere.
Answer:
1. False- Small traders who cannot afford the cost of setting up permanent shops sell their wares at weekly markets.
2. True
3. True
4. False – These days one can place an order for goods over telephone or on the internet and have it delivered at home. It is not necessary to physically visit a shop or a marketplace to shop.
5. True
E. Very Short Answer type Questions:
1. Who buys and sells goods in bulk?
Answer:
Wholesale traders buy and sell goods in bulk.
2. Who sell goods to consumers ?
Answer:
Retailers sell goods to customers.
3. How does your neighbourhood shop procure goods?
Answer:
They procure their goods from wholesale traders who buy and stock goods in bulk.
4. What is the significance of chain of markets?
Answer:
Chain of markets enable goods produced in one place to reach people everywhere.
5. What strikes one immediately on entering a shopping Mall?
Answer:
One is struck by the ostentatious and luxurious decor as soon as one enters a Mall.
6. Where do you think the lower and middle income people will enjoy shopping the most?
Answer:
I think that lower and middle income people will be most comfortable shopping in weekly markets where they can get everything they need at a good price.
7. Which is the peak time in a vegetable wholesale market?
Answer:
The vegetable wholesale market buzzes with activity at 2am in the morning when the vegetables arrive in trucks, trolleys and tractors from the farms.
8. Which trader sells his goods with the least profit margin?
Answer:
The traders at the weekly markets sell their goods with the lowest profit margins because of competition.
9. Do sales representatives sell medicines directly to doctors?
Answer:
No, sales representatives of pharmaceutical companies only share information about their range of medicines which doctors may prescribe to patients.
10. From where does a farmer buy fertilisers used for growing crops?
Answer:
Farmers buy fertilisers from special shops in the city.
F. Short Answer Type Questions:
1. What is chain of markets?
Answer:
A chain of markets is a series of markets that are connected like links in a chain because products pass from one market to another.
For example, a wholesale trader buys products from the producers – factories or farms in bulk. He then sells the goods to retailers, hawkers or other traders who are called distributors. The other traders or distributors in turn sell the goods to retailers. Finally the retailer sells the goods to the consumers.
2. What kinds of goods are sold in a Mall?
Answer:
There are different kinds of shops selling food items like pizza, burger, ice creams and so much more. There are shops selling household appliances, footwear and leather items, toys, books, branded and non- branded garments, electronic goods and a variety of other products as well.
3. Describe the activities that take place at a vegetable wholesale market before dawn.
Answer:
The vegetable wholesale market or mandi buzzes with activity since 2am when the vegetables start coming in trucks, matadors, tractor trolleys from farms both near and far. Next, the process of auction starts when wholesale traders buy vegetables in bulk from the farmers. Then the whole sale traders in turn sell the vegetables to hawkers and shopkeepers, and other traders who start coming to the market at around six in the morning.
4. How do shopkeepers in weekly markets differ from shopkeepers in a shopping complex?
Answer:
Shopkeepers in weekly markets are small traders with very little capital to invest, so they set up temporary shops in different weekly markets depending on the day of the week to sell their goods . The shopkeepers in shopping complexes are rich traders who have a lot of money to spend on their shop display. They can afford to pay high rent, electricity charges and employ shop assistants to do the heavy work.
The shopkeepers of weekly markets make a meagre profit, while those with permanent shops in shopping complexes make a considerable profit.
G. Long answer Type Questions
1. Do you think that all traders in the market gain equally ? Do you notice any other kind of inequality in the market?
Answer:
All traders in the market do not gain equally. They operate under different circumstances, invest different amounts of money, and consequently reap different benefits from the market. Small traders and hawkers have very little capital to invest so they buy the goods and painstakingly carry them around to hawk on the streets or to different weekly markets where they set up temporary shops and sell their wares. Since their investment is small and they work with help from family members only, they can sell their goods at lower prices to lower or middle income group purchasers. Consequently their profit margin is low and they earn modest sums.
Big traders who set up permanent showrooms in market complexes and shopping malls, have a lot of surplus funds to invest in decorating their shops to lure rich clientele. They stock costly goods which may or may not be branded but attract those who have money to pay for exclusive goods. The big traders make a huge profit even after covering the cost of their higher investment.
We can see that all traders in the market do not gain equally.
Inequality is evident among the different kinds of buyers as well. Some are unable to afford the cheapest of goods while others splurge on luxury items.
Thus, whether we can be buyers or sellers in different markets depends on our economic status.
Frequently asked Questions (FAQs) on NCERT Class 7 Civics Social and Political life ll Chapter 7 ‘Markets Around Us’
Our team of subject experts, trained both in India and overseas, have taken care to highlight all the important insights that this chapter provides into commercial cycles associated with markets. The chapter introduces us to different kinds of markets and their roles, how a chain of markets operates to bring goods to customers, different kinds of sellers and buyers and their needs. Our experts have provided thoughtful and lucid answers to all the questions in the book – the end of text questions as well as the In-text questions. Plenty of additional questions have been provided which cover the all facets of the lesson in detail and make you think about the subject. We suggest you go through them in right earnest to prepare yourself for your exams.
You can also download the free PDFs of the solutions anytime you please! We will keep providing you with plenty of top-quality study material and resources to help you prepare. So, make sure you keep looking up our website and join our email list to take advantage of them!
The following topics are discussed in this chapter:
Weekly market
Shops in the neighbourhood
Shopping complexes and malls
Chain of markets
Markets everywhere
Markets and equality
A chain of markets is a series of markets that are connected like links in a chain because products pass from one market to another. For instance, a wholesale trader buys products from the producers – factories or farms in bulk. He then sells the goods to retailers, hawkers or other traders who are called distributors. The other traders or distributors in turn sell the goods to retailers. Finally the retailer sells the goods to the consumers. This is how a chain is established.
There are different kinds of shops selling food items like pizza, burger, ice creams and so much more. There are shops selling household appliances, footwear and leather items, toys, books, branded and non- branded garments, electronic goods and a variety of other products as well. The goods sold in shopping malls are costlier than in other markets or shops.
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