Important Questions: Market Around Us - Class 7 MCQ

• Spinning: Spinning is the process of twisting fibers, such as cotton, into yarn or thread. This process is essential in the textile industry to create the raw material needed for weaving or knitting fabrics.


• Trader: A trader is someone who buys and sells goods or services, but they do not spin cotton into yarn.


• Ginning: Ginning is the process of separating cotton fibers from the seeds and debris. It is done before spinning the cotton into yarn.


• Seller: A seller is someone who sells goods or services to buyers. While they may sell yarn, they do not spin cotton into yarn.

• Retailers: Retailers are usually not the ones who buy bales directly. They purchase the finished products made from the bales, such as clothing or household items.



• Grocery shop: Grocery shops do not typically purchase bales. They focus on selling food and other household items to consumers.



• Spinning mill: Spinning mills are the ones who buy bales of raw materials such as cotton or wool. They use these bales to produce yarn or thread for textiles.



• Ginning mill: Ginning mills are also involved in buying bales of raw materials, specifically cotton, to separate the seeds from the cotton fibers before further processing.

Therefore, the correct answer is Spinning mill, as they are the ones who buy bales of raw materials to produce yarn or thread for textiles.

• Cloth market: Erode is famous for its cloth market which is one of the largest in South India. The city is known for its textile industry and has a wide variety of fabrics available for sale.


• Hub for textile trade: Erode acts as a hub for textile trade in the region, attracting buyers and sellers from all over the country.


• Varied range of textiles: The cloth market in Erode offers a wide range of textiles including cotton, silk, polyester, and more, catering to the diverse needs of customers.


• Wholesale and retail: The cloth market in Erode caters to both wholesale and retail customers, making it a popular destination for businesses and individual shoppers alike.


• Economic significance: The cloth market in Erode plays a significant role in the local economy, providing employment opportunities and contributing to the overall growth of the city.

• State: Tamil Nadu

• Geographical Location: Erode market is located in the state of Tamil Nadu in India.


• Importance: Erode is known for its agricultural market, especially for trading in turmeric, textiles, and food grains.


• Connectivity: The market is well-connected by road and rail networks, making it a prominent trading hub in the region.


• Historical Significance: Erode has a rich history of trade and commerce, dating back to ancient times, making it a significant market town in Tamil Nadu.


• Cultural Heritage: The market reflects the cultural diversity of the region, with traders and buyers from different parts of the country coming together to engage in business transactions.

Ginning Mill: A factory where seeds are removed from cotton bolls. The cotton is pressed into bales to be sent for spinning into thread.

• Neighbourhood Market: A small market catering to the needs of the local community.


• Weekly Market: A market that operates on a weekly basis, typically selling goods on a specific day of the week.


• Shopping Complex: A large retail area with multiple stores and facilities for shopping and entertainment.


• Buyers Market: This is not a type of market. It refers to a market condition where there are more sellers than buyers, giving buyers an advantage in negotiating prices.

In this question, we are asked to identify the types of markets. Neighbourhood markets, weekly markets, and shopping complexes are all examples of different types of markets where goods and services are bought and sold. However, a "buyers market" is not a type of market but rather a term used to describe a specific market condition. Therefore, the correct answer is C: Buyers market.

• Given Information: The number of workers in Impex garment factory is asked.


• Options:
  
  
  
  • A:

    70

  
  
  • B:

    80

  
  
  • C:

    90

  
  
  • D:

    60

  
  
  
  


• Correct Answer: A:

  70

In the question, it is stated that the number of workers in Impex garment factory is being asked. The correct answer is option A, which is 70 workers.

• Shops in the neighborhood are of a permanent nature, meaning they are established for the long term.


• They cater to the daily needs of the local residents, offering a wide variety of goods and services.

• Neighborhood shops typically offer a diverse range of products that cater to the diverse needs of the local community.


• These shops may include grocery stores, pharmacies, hardware stores, and other essential service providers.

• Neighborhood shops focus on providing products that are essential for daily living, such as food items, toiletries, and household goods.


• These shops play a vital role in meeting the day-to-day needs of the residents in the vicinity.

• Overall, shops in the neighborhood are an integral part of the community, offering convenience and accessibility to essential goods and services.


• They contribute to the local economy and help foster a sense of community among residents.

• Manufacturers: The final product is produced by manufacturers who then distribute it to the market.


• Distributors: Distributors play a crucial role in getting the product to the end consumers. They work with retailers and wholesalers to ensure the product reaches the intended buyers.


• Retailers: Retailers are the last link in the chain of the market before the product reaches consumers. They sell the product directly to the end-users.


• Consumers: Finally, the product reaches the buyers, who are the consumers. They purchase the product for their personal use or consumption.

Therefore, the final product reaches the buyers through a chain of market that involves manufacturers, distributors, retailers, and consumers.

Looms are used to weave the yarn into fabric. They are either hand operated or power operated. This process of making fabrics from yarn is called weaving

• Let's assume the weavers currently buy yarn and sell cloth for X amount of profit.


• If they were to buy yarn on their own, their profit would increase as they eliminate the middleman cost.


• Let's say their profit becomes 3X when they buy yarn on their own.

• When we compare the profit they earn currently (X) with the profit they would earn if they buy yarn on their own (3X),


• They would earn 3 times more profit by buying yarn on their own.

• Therefore, the weavers would probably earn three times more profit if they buy yarn on their own and sell cloth.

• Production: The chain starts with the production of goods by manufacturers or producers.


• Distribution: The goods are then distributed to wholesalers, retailers, and other intermediaries.


• Retail: Retailers sell the goods to consumers through various channels such as online stores, brick-and-mortar shops, or direct sales.


• Consumers: Consumers purchase the goods for personal use or consumption.


• Feedback Loop: After the sale, consumers may provide feedback or reviews, which can influence future production and sales.


• Supply Chain: The chain of buyers and sellers is part of a larger supply chain that involves various stakeholders working together to bring products to market.

• Putting-out system: The putting-out system, also known as the workshop system, was a system of merchant-capitalists "putting out" materials to rural producers who usually worked in their homes but sometimes labored in workshops or factories. This system was prevalent in the textile industry, where merchants would provide the raw materials to the weavers who would then produce the finished products.


• Arrangement between the merchant and weavers: In this system, there was an arrangement between the merchant and the weavers, where the merchant would supply the raw materials to the weavers and then buy the finished products from them.


• Characteristics of the putting-out system: This system allowed merchants to expand their businesses without having to invest in large factories. It also provided employment opportunities to rural workers who could work from their homes.


• Comparison with other systems: The sitting-out system, put-out system, and taking-out system are not terms commonly used to describe economic arrangements in the context of the textile industry. The putting-out system is the most appropriate term to describe the arrangement between the merchant and the weavers.

C is the correct option.A cooperative is "an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned enterprise". 

• State: Tamil Nadu


• Programme Details: The government runs a Free School Uniform programme in Tamil Nadu


• Cloth Procurement: The government procures the cloth for this programme from the powerloom weaver's cooperatives

• Benefits: The programme helps in providing free school uniforms to students, especially those from economically weaker backgrounds


• Empowering Weavers: By procuring cloth from powerloom weaver's cooperatives, the programme also supports local weavers and boosts the textile industry in the state


• Social Impact: Providing school uniforms can increase school attendance and academic performance among students

• Support for Education: The government's focus on education through schemes like the Free School Uniform programme highlights its commitment to improving educational access and quality


• Economic Development: By involving weaver's cooperatives in the procurement process, the government contributes to economic development at the grassroots level


• Community Engagement: The programme fosters community engagement and collaboration between the government, weavers, and schools for a common social cause

• Intermediaries: Intermediaries such as middlemen or brokers can exploit craftsmen by paying them lower prices for their goods and services.


• Profit: By paying lower prices to craftsmen, intermediaries can increase their profit margins when selling these goods to consumers at higher prices.


• Competition: In a competitive market, intermediaries may try to negotiate lower prices with craftsmen to stay competitive and attract more buyers.


• Supply and demand: If there is a high supply of craftsmen offering similar goods and services, intermediaries may have the upper hand in negotiating lower prices.


• Consumer impact: While consumers may benefit from lower prices on goods and services, it can lead to exploitation of craftsmen who are not being paid fair wages for their work.

• Cotton is grown in fields by farmers.


• It goes through processes such as picking, ginning, and baling to be turned into bales of raw cotton.

• Raw cotton is then sent to a spinning mill where it is spun into yarn.


• This yarn is then woven into fabric which will be used to make shirts.

• The fabric is sent to a garment factory where it is cut and sewn into shirts.


• These shirts are then packaged and sent to retail stores for sale to consumers.

So, the story of a shirt begins with the production of cotton, goes through various processes to become a shirt, and ends with the sale of the shirt to customers.

weekly markets do not have permanent shops. The products here are cheaper because they do not have to incur expenses like wages of workers, electricity. These shop owners sell things they produce at home and are helped by their family members.

• Exporters: These are individuals or businesses that sell goods or services to customers in another country.


• Goods Abroad: Exporters sell their products or services abroad, which means outside the domestic territory of their own country.


• Importers: On the contrary, importers are those who purchase goods from foreign countries and bring them into their domestic territory.


• Importance: Exporters play a crucial role in the economy by promoting international trade, creating job opportunities, and boosting economic growth.


• Benefits: Exporters can benefit from accessing new markets, diversifying their customer base, and increasing their revenue streams.

the producer sells the output to the agents. the wholesaler buys a large quantity from agents in less price and then sells smaller quantities to a good price to retailers.