Students can keep Class 7 SST Extra Questions and Class 7th SST Chapter 12 Understanding Markets Class 7 Important Extra Question Answer handy for quick reference during exams.
Class 7 SST Chapter 12 Understanding Markets Extra Questions
NCERT Class 7 Social Science Chapter 12 Extra Questions on Understanding Markets
Understanding Markets Class 7 Very Short Question Answer
Question 1.
Define a market.
Answer:
A market is a place where buyers and sellers exchange goods and services.
Question 2.
What is the primary role of a retailer?
Answer:
A retailer sells goods directly to consumers.
Question 3.
What does ISI certification ensure?
Answer:
It ensures the quality and safety of industrial products.
Question 4.
What is an online market?
Answer:
A market where buying and selling happen over the internet.
Question 5.
Define a monopoly market.
Answer:
A market in which a single seller controls the entire supply of goods or services.
Question 6.
What is the purpose of AGMARK certification?
Answer:
It ensures the quality of agricultural products.
Question 7.
Who introduced the concept of the “Invisible Hand” in economics?
Answer:
Adam Smith.
Question 8.
What is the primary function of wholesalers?
Answer:
They buy goods in bulk and sell them to retailers.
Question 9.
What is meant by price regulation?
Answer:
It is a government policy to control the price of essential goods.
Question 10.
What is meant by consumer rights?
Answer:
The rights that protect consumers from unfair trade practices.
Understanding Markets Class 7 Short Question Answer
Question 1.
What are the key features of a market?
Answer:
The key features of a market include the presence of buyers and sellers who engage in the exchange of goods and services. The prices of products are determined by the forces of demand and supply, ensuring a dynamic economic environment where goods and services flow according to consumer needs and market trends.
Question 2.
How does a physical market differ from an online market?
Answer:
A physical market differs from an online market in several ways. Physical markets require the direct presence of buyers and sellers, whereas online markets facilitate virtual transactions. While physical markets operate at fixed locations such as malls, grocery stores, and local shops, online markets provide access to goods and services from anywhere with an internet connection. Additionally, online markets offer the convenience of home delivery, while physical markets allow direct interaction with products before purchase.
Question 3.
Why do some families prefer to buy from supermarkets instead of local vendors?
Answer:
Some families prefer to buy from supermarkets instead of local vendors due to various reasons. Supermarkets provide better packaging and hygiene, ensuring the safety and quality of food products. They also offer a wide variety of goods under one roof, making it convenient for customers to find everything they need in a single location. Moreover, supermarkets have fixed prices, eliminating
the need for bargaining and ensuring a hassle-free shopping experience.
Question 4.
How do wholesalers help in the distribution of goods?
Answer:
Wholesalers play a crucial role in the distribution of goods by acting as intermediaries between producers and retailers. They purchase goods in bulk from manufacturers, ensuring that producers can sell large quantities efficiently. Wholesalers then distribute these goods to retailers in smaller quantities, making products accessible to consumers. Additionally, they help stabilize market prices by managing supply and demand, preventing sudden fluctuations.
Question 5.
Why do farmers throw away their produce in times of oversupply?
Answer:
Farmers sometimes throw away their produce in times of oversupply due to economic and logistical challenges. When supply exceeds demand, prices drop significantly, making sales unprofitable for farmers. The lack of proper storage facilities results in spoilage, forcing them to discard their produce. In some cases, transportation costs become unaffordable, preventing farmers from selling their goods in distant markets where they could get better prices.
Question 6.
What factors influence the pricing of a product in the market?
Answer:
Several factors influence the pricing of a product in the market. The primary determinants are demand and supply; when demand increases and supply remains limited, prices rise, and vice versa. The availability of substitutes and competition among sellers also affect pricing, as consumers opt for more affordable alternatives. Furthermore, the cost of production, including raw materials, labor, and transportation, plays a crucial role in setting the final price of a product.
Question 7.
How does the barter system differ from the modem market system?
Answer:
The barter system differs from the modem market system in significant ways. In a barter economy, goods and services are exchanged directly without using money, requiring a double coincidence of wants, where both parties must need what the other has to offer. In contrast, modem markets use money as a medium of exchange, simplifying transactions and making trade more efficient.
Question 8.
What is the importance of AGMARK certification?
Answer:
AGMARK certification is essential for ensuring the quality and authenticity of agricultural products in India. It sets quality standards that help protect consumers from adulterated or substandard goods. Farmers benefit from AGMARK certification as it helps them get better prices for high-quality produce, making their products more competitive in the market. This certification also builds consumer trust, ensuring that they receive safe and genuine agricultural goods.
Understanding Markets Class 7 Long Question Answer
Question 1.
What are the different types of markets? Explain with examples.
Answer:
Markets can be classified into various types based on their structure and function. Physical markets, like local vegetable markets and shopping malls, involve direct face-to-face transactions, while online markets, such as Amazon and Flipkart, allow digital purchases. Domestic markets operate within a country, whereas international markets involve trade across nations. Wholesale markets sell goods in bulk, like grain markets, while retail markets, such as supermarkets, sell directly to consumers in smaller quantities.
Question 2.
How do demand and supply affect market prices?
Answer:
Market prices are determined by the interaction of demand and supply. When demand is high and supply is low, prices rise due to scarcity, whereas low demand and high supply result in price drops. The equilibrium price is reached where supply matches demand. Seasonal factors also influence prices, especially for agricultural products. Sudden market shifts, such as natural disasters or economic changes, can further affect pricing trends.
Question 3.
What factors affect buying decisions apart from price?
Answer:
Several factors influence consumer buying decisions beyond price. Brand reputation and product quality play a crucial role in ensuring trust and reliability. Convenience and product availability make purchases easier and more appealing. Packaging, hygiene standards, and eco-friendliness also impact choices, especially for food and personal care items. Additionally, good customer service and an enjoyable shopping experience encourage repeat purchases.
Question 4.
Explain the role of retailers in the market system.
Answer:
Retailers act as intermediaries between wholesalers and consumers, making products easily accessible. They buy goods in bulk from wholesalers and sell them in smaller quantities to customers. Retailers ensure product variety, offer customer support, and enhance convenience through physical and online stores. They also play a significant role in brand promotion and help maintain a steady supply of goods in the market.
Question 5.
What are the benefits of online markets for buyers and sellers?
Answer:
Online markets offer numerous advantages for both buyers and sellers. Buyers benefit from convenience, as they can shop anytime from home and access a wider variety of products at competitive prices. Sellers reach a larger customer base without the need for physical stores, reducing operational costs. Additionally, online platforms provide flexible pricing, efficient inventory management, and 24/7 availability, enhancing business growth.
Question 6.
Why is FSSAI certification important in the food industry?
Answer:
FSSAI certification is essential for maintaining food safety and hygiene standards. It ensures that food products are free from adulteration and contamination, protecting consumer health. The certification builds trust in packaged food items by guaranteeing quality and regulatory compliance. It also helps food businesses adhere to legal guidelines and enhances their credibility in the market. Compliance with FSSAI regulations supports overall industry standardization and safety.
Question 7.
How do international markets impact a country’s economy?
Answer:
International markets play a significant role in boosting a country’s economy by increasing foreign trade revenue. They promote the exchange of technology, resources, and goods, fostering economic growth. These markets create employment opportunities, especially in export-oriented industries. However, they also bring competition, which can impact local businesses. International trade influences currency values and economic policies, affecting overall national development.
Question 8.
What are the major challenges faced by farmers in selling their produce?
Answer:
Farmers encounter several difficulties in selling their crops, including unpredictable price fluctuations that affect their income. They often lack proper storage and transportation facilities, leading to spoilage and waste. Dependence on middlemen reduces their bargaining power, making them vulnerable to unfair pricing. Limited access to direct markets forces them to sell at lower prices, impacting their overall profitability and financial stability.
Question 9.
What role does the Minimum Support Price (MSP) play in agriculture?
Answeer:
The Minimum Support Price (MSP) plays a vital role in agriculture by ensuring that farmers receive a fixed price for their crops, protecting them from market fluctuations. MSP provides financial security to farmers, preventing losses when market prices fall below production costs. It also encourages them to cultivate essential crops, ensuring food security in the country. Additionally, MSP helps stabilize agricultural prices by providing a guaranteed rate, reducing uncertainties in the farming sector.
Question 10.
Why do prices remain high for some products even with fewer buyers?
Answer:
Prices remain high for some products even when there are fewer buyers due to various factors. Some goods, such as luxury and branded products, maintain high prices due to exclusivity and brand value. Additionally, items with high production costs, such as handmade or technologically advanced products, are priced higher to cover expenses. Essential commodities with limited supply, like rare food items or imported goods, also tend to remain expensive despite low demand.
Understanding Markets Class 7 Source Based Questions
Read the below passages and answer the following questions:
1. Markets function with the combination of demand from buyers and supply by sellers. However, there are some situations in which this may not work very well. The government plays a crucial role in such situations. It monitors the interaction between consumers and producers, and that the price is determined fairly. Controlling prices to protect buyers and sellers.
The government controls the prices of certain goods. For example, it sets the maximum price that the seller can charge. Several essential goods and services, such as life-saving drugs, have an upper limit on their prices. Another situation where the government plays a role is with some essential agricultural products like wheat, paddy and maize. The minimum prices at which these products can be sold are set by the government. This ensures that farmers do not incur losses. The government also sets minimum wages for work done by employees so that employers make fair payments to them.
(i) What role does the government play in the market regarding prices?
Answer:
The government monitors and controls prices to ensure they are determined fairly.
(ii) What is an example of a good for which the government sets a maximum price?
Answer:
Lifesaving drugs.
(iii) Explain two ways in which the government controls prices to protect buyers and sellers.
Answer:
The two ways in which the government controls prices to protect buyers and sellers are:
(a) The government sets a maximum price that sellers can charge for certain essential goods and services, such as lifesaving drugs, to protect consumers from high prices.
(b) The government sets minimum prices for essential agricultural products like wheat, paddy, and maize to ensure farmers do not incur losses.
2. Wholesalers buy goods in large quantities from the producer or manufacturer of the product. For example, grains, vegetables, and fruits are bought by wholesalers directly from the farms. The produce is then stored in large warehouses called godowns. In the case of perishables, the warehouses may also have cold storage facilities. They are then brought to markets called mandis.
Similarly, there exist wholesale markets for other commodities like chemicals, electronic items and components, construction materials, automotive parts, etc. The wholesalers supply goods to the shops and stores located near the households. These shopkeepers are called retailers. They sell goods to the final consumers like us. Unlike wholesalers, retailers sell in smaller quantities, and the products are meant for consumption rather than resale.
(i) What is the role of wholesalers in the market?
Answer:
Wholesalers buy goods in large quantities from producers and sell them to retailers.
(ii) What are the storage facilities called where wholesalers store goods?
Answer:
Godowns.
(iii) Explain the difference between wholesalers and retailers in the supply chain.
Answer:
(a) Wholesalers buy goods in bulk from producers and sell them to retailers.
(b) Retailers sell goods in smaller quantities directly to consumers for personal use, unlike wholesalers who focus on resale.
Understanding Markets Class 7 Picture Based Questions
Look at the below picture and answer the questions that follow:
(i) What type of market does this represent?
Answer:
Retail Market.
(ii) What role does branding play in influencing consumer choices?
Answer:
Branding builds trust and influences purchasing decisions.
Class 7 Understanding Markets Extra Questions for Practice
I. Multiple Choice Questions
Question 1.
What is the primary role of a market?
(a) To provide entertainment
(b) To facilitate transactions between buyers and sellers
(c) To create government policies
(d) To produce goods
Question 2.
What is the term for buying goods or services from another country?
(a) Export
(b) Import
(c) Wholesale
(d) Retail
Question 3.
Which of the following is an example of a public good?
(a) A private car
(b) A public park
(c) A smartphone
(d) A restaurant meal
Question 4.
What does the FSSAI symbol on food products indicate?
(a) The product is expensive
(b) The product is safe to eat
(c) The product is imported
(d) The product is organic
Question 5.
What is the role of a wholesaler in the market?
(a) To sell directly to consumers
(b) To buy goods in large quantities from producers and sell to retailers
(c) To manufacture goods
(d) To set prices for goods
Question 6.
Assertion (A): The government sets minimum prices for agricultural products like wheat and paddy.
Reason (R): This ensures that farmers do not incur losses and are paid fairly.
(a) Both Assertion and Reason are correct and the Reason is the correct explanation of the Assertion.
(b) Both Assertion and Reason are correct, but the Reason is not the correct explanation of the Assertion.
(c) The Assertion is correct, but the Reason is incorrect.
(d) The Assertion is incorrect, but the Reason is correct.
II. Very Short Answer Type Questions
Question 1.
What is the term for the reduction in price offered by a seller to a buyer?
Question 2.
What is the primary function of a retailer in the market?
Question 3.
Which certification mark ensures the quality and safety of agricultural products in India?
III. Short Answer Type Questions
Question 1.
Explain the difference between a physical market and an online market.
Question 2.
What is the significance of the BEE STAR rating on electronic appliances?
Question 3.
How do wholesalers and retailers differ in their roles in the market?
Question 4.
What is the role of the government in ensuring quality and safety standards in markets?
IV. Long Answer Type Questions
Question 1.
Describe the supply chain in the Surat textile market.
Question 2.
Discuss the role of markets in connecting people, traditions, and ideas, using the example of Ima Keithal Market in Manipur.
Question 3.
Explain how the interaction between demand and supply determines prices in a market.
Question 4.
Analyze the government’s role in controlling prices and ensuring fair trade in markets.
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