Short & Long Questions: Markets Around Us | Window on the Word Class 7: Solutions, Notes & Worksheets PDF Download

Short Answer Questions

Q1: What is a market?
Ans: A market is a space (physical or virtual) where goods, services, and information are exchanged between buyers and sellers.

Q2: Who are intermediaries in markets?
Ans: Intermediaries in markets are sellers or traders, including wholesalers and retailers.

Q3: What is the main difference between wholesalers and retailers?
Ans: Wholesalers buy goods in large quantities from producers and sell to retailers, while retailers buy in smaller quantities and sell directly to consumers.

Q4: Why do wholesalers require large storage facilities?
Ans: Wholesalers deal in large quantities, so they need warehouses to store their goods.

Q5: What is a weekly market?
Ans: A weekly market is held in a particular area on a fixed day of the week, where various goods are sold, often at lower prices.

Q6: What do neighbourhood markets cater to?
Ans: Neighbourhood markets cater to the basic and immediate needs of people in a particular locality.

Q7: What advantage do supermarkets offer to consumers?
Ans: Supermarkets provide a wide selection of products and usually offer lower prices due to bulk sourcing.

Q8: Name an example of a chain store.
Ans: Bata is an example of a chain store.

Q9: Why do internet retailers like Flipkart and Amazon often offer lower prices?
Ans: Internet retailers have lower overhead costs, as they do not have to pay rent, electricity, or display expenses.

Q10: In a free market, why is there often inequality between different stakeholders?
Ans: In a free market, income disparities exist between different types of retailers and buyers due to factors like location, scale, and business model.

Long Answer Questions

Q1: Explain the roles of wholesalers and retailers in the market ecosystem.
Ans: Wholesalers buy goods in large quantities from producers and sell to retailers, who then sell to consumers. Wholesalers often handle sorting, grading, and repacking of goods. Retailers cater to the immediate needs of consumers and may provide additional services like home delivery or credit facilities.

Q2: Describe the characteristics of weekly markets and their significance.
Ans: Weekly markets are held on fixed days of the week in specific areas. Sellers set up temporary stalls and offer a wide range of goods at lower prices. They are more common in rural areas and serve as a crucial source of affordable daily necessities for millions of people in India.

Q3: Compare neighbourhood markets and supermarkets in terms of offerings and consumer preferences.
Ans: Neighbourhood markets cater to the immediate needs of a specific locality, providing a range of goods and services. Supermarkets are large retail outlets with a wide selection of products, usually at lower prices. Consumer preferences depend on factors like convenience, availability, and budget.

Q4: Discuss the impact of supermarkets and malls on small retailers.
Ans: The growth of supermarkets and malls poses a threat to small retailers. Supermarkets buy goods in bulk directly from producers, enabling them to offer lower prices than small vendors. Additionally, aggressive marketing campaigns often benefit branded goods sold in malls, which small shopkeepers may not have access to.

Q5: What are the factors that influence a consumer's choice of market?
Ans: Consumer choice of market is influenced by factors like convenience, availability of specific products, quality, credit facilities, and price. Proximity, product variety, and affordability play significant roles in determining where consumers choose to shop.

Q6: Explain why online selling is considered a major threat to conventional brick and mortar shops.
Ans: Online selling is a major threat to conventional shops because internet retailers have lower overhead costs. They don't need to pay rent, electricity, or maintain physical stores, allowing them to offer lower prices. Additionally, the convenience of shopping from home attracts many consumers to online platforms.

Q7: Discuss the concept of inequality in markets, giving examples.
Ans: In free markets, inequality exists in terms of income levels between different types of retailers and buyers. For example, a mobile ice-cream vendor earns significantly less than an individual who runs an ice cream parlour at a supermarket. There is also inequality between the earnings of wholesalers, retailers, and original producers, particularly for perishable goods.

Q8: How do supermarkets benefit consumers in terms of product variety and pricing?
Ans: Supermarkets offer consumers a wide selection of products under one roof. They source goods in large quantities, allowing them to sell at lower prices. This variety and competitive pricing make supermarkets attractive to consumers looking for convenience and cost-effective shopping.

Q9: Why do retailers need to sell goods at higher prices than wholesalers?
Ans: Retailers need to cover their costs and make a profit. They buy goods in smaller quantities and often provide additional services to consumers. To ensure sustainability, they sell goods at prices higher than the rates at which they purchased them from wholesalers.

Q10: Discuss the evolution of markets from ancient times to the present day, emphasizing the role of intermediaries.
Ans: Markets started as places for direct barter between buyers and sellers in ancient times. With the emergence of money, markets evolved and became more complex. Intermediaries like wholesalers and retailers now play a crucial role in the buying and selling process, connecting producers and consumers. They facilitate the distribution of goods on a larger scale and add value to the market ecosystem.