Class 7 Social Science Questions Answer Chapter 12 NCERT

Understanding Markets

1. What are the main features of a market? Recall a recent visit to a market to purchase a product. What are the different features of a market that you observed during this visit?

Answer:

A market is a place where buyers and sellers meet to exchange goods and services at an agreed price. The main features of a market are:

• Buyers and Sellers: People who want to buy and those who want to sell.
• Goods and Services: Items like vegetables, clothes, or services like tailoring.
• Price: The amount agreed upon for the transaction.
• Negotiation: Buyers and sellers discuss to settle on a fair price.

During my recent visit to a local vegetable market, I observed:

Many stalls with sellers offering fruits, vegetables, and grains.
Buyers asking about prices and bargaining to get a lower price.
Different products like tomatoes, onions, and potatoes displayed on carts.
A lively atmosphere with people talking and exchanging goods.

2. Remember the epigraph from a famous economist at the beginning of the chapter? Discuss its relevance in the context of the chapter you have read.

Answer:

The epigraph by Adam Smith says, “Prosperity emanates from the market that develops when people need goods and services that they can’t create themselves.” This means markets help people get what they need but cannot make on their own, which leads to prosperity.

This is relevant to the chapter because it explains how markets work. For example, farmers sell vegetables in markets, and we buy them because we don’t grow them ourselves. Markets connect people, provide goods like clothes and food, and help society prosper by meeting everyone’s needs.

3. In the example of buying and selling of guavas, imagine that the seller is getting a good price and is able to make a profit. He will try to get more guavas from farmers to be able to sell them at the same price and increase his earnings. What is the farmer likely to do in this kind of a situation? Do you think he will start thinking about the demand for guavas in the next season? What is likely to be his response?

Answer:

If the seller is getting a good price for guavas and wants more, the farmer will likely:

Sell more guavas to the seller to earn more money.
Plan to grow more guavas in the next season because he knows there is high demand.
The farmer will think about the demand for guavas and may increase his crop to meet it. He might also try to improve the quality of guavas to get a better price in the future.

4. Match the following types of markets with their characteristics:

Answer:

5. Prices are generally determined by the interaction between demand from buyers and supply by sellers. Can you think of products where prices are high despite fewer buyers demanding the product? What could be the reasons for that?

Answer:

Some products have high prices even if fewer people demand them. Examples include:

• Gold or diamonds: These are rare and expensive to mine, so their supply is low, making prices high even with fewer buyers.
• Luxury cars: These are made with high-quality materials and advanced technology, so their production cost is high, keeping prices high.

Reasons for high prices:

• Low supply: If the product is rare or hard to produce, the price stays high.
• High production cost: Expensive materials or processes increase the price.
• Special demand: Some people are willing to pay more for unique or luxury items.

6. Look at the real-life situation that a retail seller of vegetables encountered: A family came to shop for vegetables. The price of beans that the seller on the cart was offering was ₹30/kg. The lady started to bargain with the seller to bring the price down to ₹25/kg. The seller protested and refused to sell at that price saying he would make a loss at that price. The lady walks away. The family then goes to a super bazaar nearby. They buy vegetables in the super bazaar where they pay ₹40/kg for the beans that is neatly packed in a plastic bag. What are the reasons that the family does this? Are there factors that affect buying and selling which are not directly connected to price?

Answer:

The family chose to buy beans at ₹40/kg from the super bazaar instead of bargaining for ₹25/kg from the cart seller. Reasons for this:

• Quality: The beans in the super bazaar might look fresher, cleaner, or better packed.
• Convenience: The super bazaar is more comfortable, with air conditioning and a variety of products in one place.
• Trust: The family might trust the super bazaar more for hygiene or quality standards.
• Packaging: Neatly packed beans in plastic bags may seem more appealing.

Factors not directly connected to price:

• Quality and freshness: Buyers prefer good-quality products.
• Shopping experience: A clean and organized store feels better than a roadside cart.
• Brand trust: People may trust big stores more than small sellers.
• Time and effort: It’s easier to buy from a store than to bargain.

7. There are some districts in India that are famous for growing tomatoes. However, during some seasons, the situation is not good for farmers. With a large quantity of harvest, there are reports of farmers throwing away their produce and all their hard work going to waste. Why do you think farmers do this? What role can wholesalers play in such situations? What are the possible ways of ensuring that the tomatoes are not wasted, and the farmers are also not at a loss?

Answer:

Why farmers throw away tomatoes:

• Too much supply: When many farmers grow tomatoes, the market has more than needed, so prices fall very low.
• Low prices: If the price is too low, farmers cannot cover their costs, so they throw away tomatoes instead of selling at a loss.
• No buyers: Sometimes, there are not enough buyers or markets to sell all the tomatoes.
• Perishable: Tomatoes spoil quickly, and if not sold in time, they go bad.

Role of wholesalers:

• Wholesalers can buy large quantities of tomatoes from farmers at a fair price and store them in cold storage to sell later.
• They can supply tomatoes to other markets or cities where there is demand.
• They can connect farmers to food processing companies that make products like ketchup or puree.

Ways to avoid waste and loss:

• Cold storage: Store tomatoes in warehouses to keep them fresh longer.
• Processing units: Turn tomatoes into products like sauce, puree, or dried tomatoes.
• Government help: The government can set a minimum price for tomatoes to ensure farmers don’t lose money.
• Export: Sell extra tomatoes to other countries where there is demand.
• Local markets: Encourage weekly markets or fairs to sell tomatoes at fair prices.

8. Have you heard about or visited a school carnival/fair organized by your school or any other school? Discuss with your friends and teachers about the kind of activities organized by students there. How do they conduct selling and negotiation with the buyers?

Answer:

Yes, I have visited a school carnival organized by my school. At the carnival, students set up stalls to sell things like:

• Food items: Snacks, juices, and homemade sweets.
• Handmade crafts: Bookmarks, greeting cards, and paintings.
• Games: Ring toss or lucky draw for prizes.

Activities and selling:

Students decorated their stalls with colorful posters to attract buyers.
They shouted slogans or explained their products to invite people.
Some stalls offered discounts, like “Buy 2 snacks, get 1 free,” to encourage sales.

Negotiation with buyers:

Buyers, like parents or other students, sometimes asked for lower prices. For example, if a craft was priced at ₹50, they might ask for ₹40.
Students politely explained the effort put into making the item but sometimes lowered the price a little to make the sale.
For games, they offered extra chances to play if someone bought multiple tickets.
They smiled and talked nicely to convince buyers, making the experience fun for everyone.

9. Choose any 5 products and check out the label with the certification signs discussed in the chapter. Did you find products that did not have a logo? Why do you think this is so?

Answer:

I checked the labels of five products at home:

• Packet of gram flour: Had the FSSAI logo, showing it is safe to eat.
• Refrigerator: Had a BEE Star rating (4 stars), showing it saves energy.
• Honey jar: Had the AGMARK logo, ensuring good quality.
• Ceiling fan: Had the ISI mark, showing it is safe to use.
• Bag of apples: No certification logo was found.

Why some products don’t have a logo:

• Fresh produce: Apples or vegetables are often sold loose in markets and may not have packaging with logos.
• Local or unpackaged items: Products from small vendors or farms may not go through certification processes.
• Not mandatory: Some products, like fresh fruits, don’t always need certifications if sold directly by farmers.

10. You and your classmates have manufactured a soap bar. Design a label for its packaging. What in your opinion should be mentioned on the label for the consumer to know the product better?

Answer:

Soap Bar Label Design:

• Brand Name: “GlowEasy Soap”
• Image: A picture of bubbles and flowers to show it’s gentle and fresh.
• Color: Green and white background to look natural.
• Slogan: “Clean and Soft, Naturally!”

Information on the Label:

1. Product Name: GlowEasy Herbal Soap
2. Net Weight: 100 grams
3. Ingredients: Coconut oil, aloe vera, neem extract, water, and fragrance.
4. Benefits: Moisturizes skin, fights germs, and smells fresh.
5. FSSAI Logo: To show it’s safe for use.
6. Date of Manufacture: e.g., October 2025
7. Best Before Date: e.g., October 2026
8. Batch Number: e.g., GE1234
9. Manufacturer Details: GlowEasy Pvt. Ltd., 123 Green Street, Delhi.
10. Instructions: Use on wet skin, lather, and rinse off. Keep away from eyes.
11. Allergen Warning: “Contains coconut oil; check for allergies.”

This information helps consumers know what the soap is made of, how to use it, and if it’s safe and reliable.

The Big Questions (Page 247)

1. What are markets and how do they function?

Answer:

A market is a place where people buy and sell goods and services. It can be a physical place like a bazaar, haat, or mall, or an online platform like a shopping app. Markets are also called bazaar (in Hindi) or mārukatté (in Kannada).

How markets function:

• Buyers and Sellers: Markets have buyers who want to purchase and sellers who offer goods or services.
• Goods and Services: Items like vegetables, clothes, or services like online classes are exchanged.
• Price Agreement: Buyers and sellers negotiate to agree on a price. For example, a seller may ask ₹80 for guavas, but the buyer offers ₹40, and they settle at a fair price like ₹50.
• Supply and Demand: The amount of goods sellers bring (supply) and the amount buyers want (demand) decide the price. If many buyers want guavas, the price may go up. If there are too many guavas, the price may go down.
• Chain of Supply: Goods move from producers (like farmers) to wholesalers, then to retailers, and finally to consumers. For example, farmers sell vegetables to wholesalers, who supply them to shopkeepers, who sell to us.

2. What is the role of markets in people’s lives?

Answer:

Markets play a big role in people’s lives by:

• Providing Goods and Services: Markets help people get things they cannot make themselves, like food, clothes, or electronics. For example, we buy vegetables from markets because we don’t grow them at home.
• Meeting Needs and Wants: Markets fulfill needs (like food and water) and wants (like toys or phones).
• Creating Jobs: Markets provide work for farmers, shopkeepers, wholesalers, and others, helping families earn money. For example, women at Ima Keithal market in Manipur sell goods and support their families.
• Connecting People: Markets bring people together to share ideas, traditions, and cultures. For example, Ima Keithal is a place where different communities meet and exchange traditions.
• Building Relationships: Buyers and sellers often form long-term bonds. For example, families may trust the same grocer or tailor for years.
• Improving Products: When consumers prefer energy-efficient products (like refrigerators), markets encourage producers to make better goods, benefiting society.

Without markets, it would be hard to get what we need, and life would be difficult.

3. What role does the government play in markets?

Answer:

The government plays an important role in markets to make them fair and safe:

• Controlling Prices: The government sets maximum prices for essential goods like medicines to protect buyers from high costs. It also sets minimum prices for crops like wheat to ensure farmers don’t lose money. For example, it fixes a minimum wage so workers are paid fairly.
• Ensuring Quality and Safety: The government checks if products meet quality standards. For example, it tests medicines to ensure they are safe and checks packaged goods for correct weight. Certifications like FSSAI or ISI marks show products are safe.
• Protecting the Environment: The government makes rules to stop harmful effects of markets, like banning single-use plastics that pollute the environment.
• Providing Public Goods: The government supplies things like roads, parks, and police services that markets don’t provide because they don’t make a profit.
• Preventing Unfair Practices: The government stops sellers from cheating buyers, like selling low-quality goods or charging too much.

4. How can consumers assess the quality of goods and services they purchase?

Answer:

Consumers can check the quality of goods and services in these ways:

Certification Marks: Look for government logos on products:

FSSAI: Found on food items like flour or milk, showing they are safe to eat.
ISI Mark: On electrical items or tires, showing they are safe and good quality.
AGMARK: On agricultural products like honey or spices, ensuring quality.
BEE Star Rating: On electronics like TVs or fridges, showing how energy-efficient they are (more stars mean less electricity use).

Product Labels: Check details like:

Net quantity (e.g., 1 kg of flour).
Date of manufacture and best before date to know if it’s fresh.
Ingredients list to check what’s in the product.
Allergen warnings to avoid harmful substances.

Reputation and Reviews: Ask friends or family about a product’s quality (word of mouth). For online shopping, read reviews and ratings from other buyers to know if the product is good.
Personal Checks: For example, when buying marbles, check their size, strength, and color to ensure they are good for a competition.