Pol. Sci: Chapter- 8.
Markets Around Us
Textbook Work
Key Terms: Refer Textbook Page No.252
Multiple Choice Questions - (Page-253)
1. It is a place where goods and services are exchanged for a
price.
(b) Markets
2. Weekly market is a temporary open market because
a. It has a makeshift stalls that are set up for a particular
day.
Multiple Choice Questions - (Page-255)
1.A___________ buys goods in bulk from manufacturers and
sells them to the retailers.
b. wholesaler
2. What is a mandi?
c) Agricultural market that offers best price to farmers for
their produce.
EXERCISE (Page-257)
Oral Questions
1.Name the two types of shops found in the neighbourhood.
Ans: Permanent and makeshift shops.
2.Why are goods sold in malls costly?
Ans: Because the malls have to spend a lot of money on
maintenance.
B. Multiple Choice Questions
1.
Column-A Column-B
I. Retailers A. commission agent who works in mandis
II. Wholesaler B. buy and sell goods in bulk
III.Arhatiyas C.buy products from manufacturer/ wholesaler
Ans:(b) I-C, II - B, III-A
2.Which one out of the following shows the changing trend in the
concept of market?
(c ) Buying goods while sitting at home through phone and
internet
3.The best way to protect the interests of customers and
weavers are by
(a) Establishing co-operatives
4. Read the following statements and advantages of weavers in
‘putting - out system’. Select the correct option from the codes
given below.
(b) both II and III
5. How do goods reach the markets? Identify the correct order
through which goods and merchandise reach markets.
a. manufacturer- wholesaler- retailer- consumer
C. In the question given below, there are two statements
marked as Assertion (A) and Reason (R). Read the statements
and select the correct option.
Assertion (A): An onion farmer from Nashik takes help from
intermediaries like retailers or wholesalers to sell his
produce.
Reason (R): It is not possible to reach out to millions of
consumers throughout the country.
Ans: a) Both A and R are true and R explains A.
D. Read the source given below and answer the questions
that follow.
All goods travel through a chain of markets before they
reach us. The wholesale trader purchases in bulk from the
manufacturer or agent and stocks them in a warehouse. The
retailer buys from the wholesaler and sells various
commodities to the consumer in small quantities through
different kinds of retail outlets.
1.What is the role of chain of markets?
a. It helps the producers/ manufacturers to reach their
consumers spread throughout the country.
2.Who are intermediaries?
(b)They are retailers and wholesalers who connect the
producers and consumers.
Notebook Work
E. Answer the following questions.
Short Answer Questions.
1. What is the best way to protect the interest of farmers
and weavers?
Ans: i) The best way to protect the interest of farmers and
weavers is to establish cooperatives and ensuring that rules are
strictly put into practice.
ii)They can get loans on low rate of interest, essential expertise
and even help in marketing of their commodities.
2. State three reasons that make neighbourhood shops a
popular market for the people living around.
Ans: The biggest advantage of neighbourhood shops is that they
are located in close vicinity; as a result, the consumer and trader
know each other. The merchandise sold here are expensive, but
the shopper can buy goods on credit.
3. As compared to permanent shops why are weekly
markets cheaper?
Ans:i) A weekly market is a temporary open market held on a
particular day of the week.
ii) In this kind of market, makeshift stalls are set up and so,
unlike permanent shops they do not incur a lot of operating costs
like rent, electricity and tax.
iii) As a result, price of commodities in weekly market is also
cheaper.
4.Evaluate the role of intermediaries in a market scenario?
Ans:i) A manufacturer cannot get in touch with all his customers
directly. For example, an onion farmer in Nashik cannot reach
out to millions of consumers throughout the country. So, he has
to take the help of intermediaries like retailers or wholesalers.
ii) These intermediaries are traders, who connect the producer
and consumer.
iii) They take care of two very significant hurdles of trade—
distance between place of manufacture and consumption; and
time gap between creation and use.
iv)Besides, intermediaries make goods accessible to customers
at reasonable prices as they buy goods in bulk that help in
keeping the product prices low.
v) They also provide information about change in taste of
consumers and activities of opponent companies in the market.
5. How is a retailer different from wholesaler?
Ans: A wholesaler buys goods in bulk from manufacturers or
their agents and stocks them in a warehouse. Whereas, the
retailer buys from the wholesaler and sells various commodities
to the consumer in small quantities through different kinds of
retail outlets.
Application Based Question
Sameer's mother prefers to buy vegetables and grocery from the
weekly market rather than from the permanent market. With
reference from the lessons, explain why she prefers the weekly
market?
Ans: a) At these markets, a large number of shops sell similar
products, so there is stiff competition.
b) Therefore, the seller cannot overcharge and the buyer can
bargain and get the best possible price.
c) Another important advantage is that at a weekly market we
get a large variety of things (like grocery, vegetables, utensils,
bags, clothes, ornaments, furnishings) at low price.
Long Answer Questions
1.What is a market? Compare a weekly market with a
neighbourhood market.
Ans: A market is a place where goods and services are
exchanged for a particular price. Markets have been an integral
part of our lives since ancient times.
Weekly Market Neighbourhood Market
1.A weekly market is a 1. Neighbourhood shops are
temporary open market held permanent.They are situated
on a particular day of the next to residential areas such as
week. grocer, barber, tailor, etc.
2. Price of commodities in 2. The Merchandise sold here
weekly market is cheaper. are expensive.
3.The shop owners of the 3.The permanent shop owners
weekly market generally have to pay taxes and rent. So,
store the goods at home. So, they incur higher operating
the operating cost is less. costs.
4.Their family members 4.Permanent shops have to hire
assist them.So they need not employees.
hire labour.
5.The customer cannot buy 5.The customer can buy goods
the goods on credit. on credit.
6.In weekly market buyer 6.Bargaining is not possible in
can bargain and get best neighbourhood shops.
possible price.
2. Write a short note on different types of retailers.
Ans: i) A retailer buys products from the manufacturer or
wholesaler and sells it to the consumer.
ii) There are different types of retailers; the shops in the
neighbourhood area, weekly market shops, shops in a shopping
complex or in a shopping mall, and online retailing business.
iii) There are the department stores offering a variety of
products. There are supermarkets which are a self-service store
consisting mainly of grocery.
iv) A weekly market is a temporary market held on a particular
day of the week. In most large towns and cities, one comes
across marketplaces next to residential areas—grocer, barber,
medicine store, etc.
v)In urban areas, we come across a group of shops under one
roof, popularly known as shopping complex.
vi) Another popular market place in urban area is the mall.
Hence, there are various retailers in the market.
3.What are the advantages and disadvantages of ‘putting -
out system’?
Ans:i)Putting-out system is a method of manufacturing wherein
the merchants provide raw material to the independent small
weavers.
ii)The weavers process the raw material and return the finished
product to the trader within a stipulated time.
iii) This system of manufacturing is widely practised in different
parts of India.
iv)This system is advantageous for weavers- firstly, they do not
have to pay for the yarn; secondly, they do not have to worry
about selling the finished products.
v) However, the biggest disadvantage is that the merchants
exercise a lot of power as they get to decide what is to be made
and pay insufficient amount for the weavers’ hard work.
4.Write a brief note on how the chain of markets is set up?
Ans: i) All goods travel through a chain of markets before they
reach us.
ii) The wholesale trader purchases in bulk from the manufacturer
or agent and stocks them in a warehouse.
iii) The retailer buys from the wholesaler and sells various
commodities to the consumer in small quantities through
different kinds of retail outlets. Chain of market is explained
below:
5.With changing times, the concept of markets has undergone a
remarkable change. Elaborate on the statement.
i) With the changing times, the concept of markets has also
undergone a remarkable change.
ii) Nowadays, we can make purchases even sitting at home
through phone or internet.
iii)We simply place order on the phone or internet and can make
payment on delivery or online with credit cards. For example,
companies like Flipkart and Snapdeal sell a variety of
merchandise online.
iv) Besides, there exists special markets which we are not aware
of because we do not use them directly. For example, farmers
use pesticides, tractors and many other types of equipment to
grow cotton crop.
v)They procure these from special shops located in large towns
or cities.
6.Explain briefly how market promotes inequality.
Ans: i) On one hand markets create employment opportunities,
indicate country’s progress and generate revenue, but on the
other hand it also promotes inequality.
ii) A chain of markets links the producer to the consumer, but not
everyone gains equally from all the buying and selling activities.
iii)There are some who make huge profits, while some earn barely
enough to fulfil their day to day needs.
iv)It is mostly the affluent and the influential who make maximum
profit from the market. Whether it is the farmer, weaver or
labourer, all are exploited by the rich and powerful as they are
dependent on them for loan, raw material and for employment
opportunities.
