Class 10 Economics Chapter 3 Practice Question Answers - Understanding Economic Development

Ans: Consumer awareness is essential to avoid exploitation in the market place as:

• Consumers must be aware of not only the goods and services but also legal measures to protect themselves.
• If consumers are actively involved, companies will also be on their guard to provide better goods and services.
• Consumers must be aware of anti-social activities like hoarding, black marketing etc.
•  It makes consumer a rational consumer having knowledge of how market works.
•  It enables consumer to be aware of government policies for certification marks such ISI, Agmark that ensure product quality for consumers.
• It enables consumer to use Right to Information Act (RTI) to get information on functioning of government departments.

Ans: National Level Consumer Courts.

Ans: Right to Seek Redressal

Ans: Hallmark

Ans: A three-tier quasi-judicial machinery at the district, state and national level, was set up under COPRA, for redressal of consumer disputes in India. At the district level, consumer courts deal with cases involving claims up to 20 lakhs. At the state level, consumer courts dealwith cases involving claims between 20 lakhs and 1 crore. At the national level, consumer courts deal with cases involving claims exceeding 1 crore. If the case is dismissed at the district level, then the consumer can appeal at the state and then at the national level, if required.

Ans: There are many factors that gave birth to the consumer movement in India. It started as a social force with the need to protect and promote the interests of the consumers against unfair and unethical trade practices. Extreme food shortages, hoarding, black marketing and adulteration of food led to the consumer movement becoming an “organised arena” in the 1960s. Till the 1970s, consumer organisations were mostly busy writing articles and holding exhibitions. More recently, there has been an upsurge in the number of consumer groups who have shown concern towards ration shop malpractices and overcrowding of public transport vehicles. In 1986, the Indian government enacted the Consumer Protection Act, also known as COPRA. This was a major step in the consumer movement in India.

Ans: Rules and regulations are required for the protection of consumers in the market place due to the following reasons:

• Sometimes, traders indulge in unfair trade practices such as underweight, undermeasurement, adulteration, hoarding etc.
•  Most of the consumers are unaware of their rights and they are often deceived by the suppliers.
•  Whenever a complaint regarding goods or services is made, the seller tries to shift all the responsibility on the buyer.
•  Sometimes, the sellers make false claims about the durability and quality of their products through advertisements, catchy slogans and jingles.
• Sometimes, the sellers create artificial scarcity through hoarding and black marketing to sell the goods at higher prices.
•  Sometimes, the sellers indulge in adulteration of goods and provide poor quality goods in order to achieve the goals of profit and growth.

Ans: The Government of India can protect the interests of the consumers in many ways. Some of them are:

• It should formulate rules and regulations to protect and safeguard the interest of consumers.
•  It should enforced these rules and regulations on a regular basis, so that producers should maintain a certain minimum level of quality.
• A three tier quasi-judicial machinery has been set up at district, state and national level for redressal of consumer disputes.
•  It has also passed the Consumer Protection Act, 1986 to safeguard the interest of consumers which provides various rights and responsibilities to consumers.
•  Posters are regularly advertised in the newspapers under the name Jago Grahak Jago through which the government spreads information. if) Consumer Protection Councils are also working for the welfare and protection of consumer rights. They write articles and hold exhibitions to impart knowledge about consumer rights and consumer problems.

Ans: Consumer redressal process is becoming cumbersome, expensive and time consuming because:

• Many a times, consumers are required to engage a lawyer, which becomes an expensive affair.
•  The cases require time for filing and attending court proceedings which may not be possible for everyone.
•  In most cases, the cash memos are not issued by the producers or sellers to the consumers. In that case, proper evidence is not easy to gather and produce in the court.
•  The existing laws on the issue of compensation are not very clear and specific.

Ans: Right to safety means that we as consumers have the right to be protected against the marketing of goods and delivery of services that are hazardous to life and property. Producers and manufacturers should adhere to safety norms while manufacturing goods. There are many goods and services, that we purchase require special attention to safety. For example, pressure cookers have a safety valve, which if defective can cause a serious accident. The manufacturers should ensure high standards and the consumers should read all the instructions given on the box of the pressure cooker.

Ans: The factors which cause exploitation of consumers in the market place are:

• Limited information: For taking a correct decision and choice about a product, a consumer needs full information about the price, quality, durability, composition, date of manufacture and expiry, ingredients etc. In the absence of full information, a consumer may get exploited in an easy way.
•  Limited competition: When there is a limited competition with regard to production, i.e., when producers are few and can control and restrict the supply of a product, there is possibility of manipulation of prices.
•  Limited supply: When supply of a good is less than its demand, the prices may go up and encourage the tendency of hoarding. As a result, the consumer may be exploited.
• Adulteration: It means mixing or substituting undesirable materials in the food. It causes a heavy loss to the consumers both monetary and healthwise.
•  Hoarding and black-marketing: Traders hold the stock of essential commodities to create artificial scarcity in the market, so that they can sell the commoditiesat higher prices.
• Under measurement: Traders usually indulge in malpractices like giving undermeasured goods and charge for the actual quantity.
• Sub-standard goods: In the name of genuine parts or goods, sub-standard or inferior goods are sold in the market. For example, duplicate medicines can be injurious to the health of a person. Defective electrical items without safety measures can be fatal for the user.

Ans: According to this right, a consumer has freedom to choose from a variety of products at competitive prices. This implies that the marketers should offer a wide variety of products in terms of quality, brand, prices, size etc. and allow the consumers to make a choice from amongst these. For example, a consumer wants to buy a toothbrush but the shopkeeper says that he will sell the toothbrush only if the consumer will buy toothpaste. Such a situation is denial of right to choose.

Ans: Consumers have the right to seek redressal against unfair practices and exploitation. If any damage is done to a consumer, he or she has the right to get a compensation, depending on the degree of damage. There is need to provide an easy and effective public system by which this can be done. For example, Pihu had sent a money order to her village for her sister’s marriage. The money did not reach her sister at the time when she needed it, nor did it reach months later. So, Pihu filed a case in the district level consumer court and practised her right to seek redressal.

Ans: According to this right, a consumer has freedom to choose from a variety of products at competitive prices. This implies that the marketers should offer a wide variety of products in terms of quality, brand, prices, size etc. and allow the consumers to make a choice from amongst these. For example, a consumer wants to buy a toothbrush but the shopkeeper says that he will sell the toothbrush only if the consumer will buy toothpaste. Such a situation is denial of right to choose.

Ans: In October 2005, the Government of India enacted a law knovjn as Right to Information Act (RTI), which ensures its citizens all the information about the functions of government departments. For example, Shalini filled the admission form of nursery class for her son Kunal in XYZ School near her residence. But, her son was not given admission in that school. Shalini wanted to know the exact reason for refusal of admission but the school did not react on this. She, therefore, filed an application using the  RTI Act saying that it was her right to know the reason of denial of admission. After investigation, she came to know that reason given by the school was not genuine. Ultimately, school was ordered to give admission to her son. This case shows the positive impact of RTI. RTI builds pressure bn government officials to deliver results in a time-bound frame. It brings transparency and helps in reducing corruption.

Ans: The precautions should be kept in mind by a consumer while purchasing medicines from the market are:

• He should check the expiry date of the medicines before purchasing them.
• He should check the details given on the packets of the medicines such as directions for use, side effects and risks.
•  He should always ask for cash memos or bills for medicines purchased as it is a proof of purchase.

Ans: The factors that gave birth to Consumer Movement in India are:

• There was dissatisfaction among the consumers regarding unfair trade practices i being indulged by the producers and sellers.
• There was no legal system available for the protection of consumers from exploitation in the market place.
•  Rampart food shortages, hoarding, black-marketing and adulteration of food and edible oil posed a threat to the consumers.
•  The consumers were unaware about their rights. So, to educate and make them aware, consumer movement began.

Ans: 24th December

Ans: According to this right, every consumer has the right to be informed about the particulars of goods and services that they purchase. It is mandatory for the producers to provide complete information regarding their ingredients, date of manufacture, expiry date etc. to the consumers.
The details given on the packet help the consumers in many ways. Some of them are:

• If a consumer buys a product and finds it defective within the expiry period, he can ask for its replacement.
• If someone sells the good at more than the printed price on the packet, then a consumer can protest and ask for an explanation.

Ans: Markets do not work in a fair manner when:

• producers are few and powerful.
• consumers purchase in small quantities.
• consumers are scattered.

Ans: A consumer should learn to be well informed because:

• A well informed consumer knows how to fight for his rights.
•  A well informed consumer cannot be cheated easily by the shopkeepers, traders etc.
• Such a consumer will be able to approach institutions for seeking redressal.
• Consumers will be able to check the provisions made by the government if they are denied from exercising their rights.
• A well informed consumer becomes a rational consumer, i.e., he knows how to spend the money to derive maximum satisfaction out of the products, he buys.

Ans: The factors that gave birth to Consumer Movement in India are:

• There was dissatisfaction among the consumers regarding unfair trade practices being indulged by the producers and sellers.
• There was no legal system available for the protection of consumers from exploitation in the market place.
• Rampart food shortages, hoarding, black-marketing and adulteration of food and edible oil posed a threat to the consumers.