Class 7 Social Science Notes Chapter 8 (Market Around Us) – Social and Political Life Book

Alright class, let's focus on Chapter 8, 'Market Around Us'. This chapter is crucial for understanding basic economic activities and how goods reach us. Pay close attention, as concepts related to markets frequently appear in various government exams.

Chapter 8: Market Around Us - Detailed Notes

1. What is a Market?

• A market is essentially a mechanism or arrangement where buyers and sellers interact to exchange goods and services.
• It's not always a physical place; it can be virtual (online) or occur through various channels.
• Markets link producers (those who make goods) to consumers (those who use goods).
• They cater to our diverse daily needs – from vegetables and groceries to clothes and electronics.

2. Types of Markets:

• a) Weekly Markets:

  • Characteristics: Held on a specific day of the week at a particular place. They are not permanent structures; traders set up shops for the day and then move elsewhere.
  • Advantages for Consumers:
    • Lower Prices: Goods are often cheaper because traders don't have expenses like rent for permanent shops, electricity, or employee wages. There's also high competition among sellers.
    • Variety & Availability: A wide range of items (vegetables, groceries, cloth items, utensils, tools) are available in one place, making it convenient.
    • Bargaining: Prices are often not fixed, allowing for bargaining.
  • Social Aspect: These markets often serve as social gathering points for people from surrounding areas.
  • Example: The local 'haat' or 'bazaar' held on Saturdays in many towns/villages.

• b) Shops in the Neighbourhood (Neighbourhood Markets):

  • Characteristics: These are permanent shops located near residential areas. They include dairy booths, grocery (kirana) stores, chemists, stationery shops, etc.
  • Advantages for Consumers:
    • Convenience: Proximity to homes makes them easily accessible. They are often open on most days.
    • Credit Facility: Many shopkeepers know their regular customers and offer goods on credit (udhaar), allowing payment later.
    • Personal Touch: Buyers and sellers often know each other, fostering a personal relationship.
  • Disadvantages: Prices might be slightly higher compared to weekly markets due to overhead costs (rent, electricity, etc.).

• c) Shopping Complexes and Malls:

  • Characteristics: Typically large, multi-storeyed, air-conditioned buildings found mainly in urban areas. They house numerous shops under one roof.
  • Goods Sold: Often sell branded goods, but may also have shops selling non-branded items. Quality is generally perceived to be higher, but so are the prices.
  • Pricing: Goods are usually sold at fixed prices (no bargaining). Prices are generally high due to significant overheads (rent, maintenance, advertising, staff).
  • Target Audience: Primarily cater to more affluent sections of society.
  • Additional Features: Often include food courts, restaurants, cinemas, and entertainment zones, making them leisure destinations as well.

3. Chain of Markets:

• This refers to the sequence of markets through which goods travel from the point of production to the final consumer. Goods pass through several hands.
• Producers: Individuals or entities that produce goods (e.g., farmers growing cotton, factories manufacturing clothes). Producers usually sell in bulk.
• Wholesalers: These are traders who buy goods in large quantities directly from producers. They act as intermediaries. They typically do not sell small quantities to individual consumers. Their main role is to break the bulk and sell to retailers.
  • Example: A wholesale vegetable merchant buys large quantities of onions from farmers and sells them in sacks to smaller vendors or shopkeepers.
• Retailers: These are traders who buy smaller quantities from wholesalers and sell directly to the final consumers.
  • Examples: The neighbourhood shopkeeper, the trader in the weekly market, a shop in a mall.
• The Flow: Producer → Wholesaler → Retailer → Consumer.
• Importance: This chain ensures that goods produced in one area reach consumers across different locations. Every link in the chain adds some cost (transport, storage, profit margin), increasing the final price for the consumer.

4. Markets Everywhere:

• Buying and selling are not confined to the physical marketplaces mentioned above.
• Modern Forms:
  • Online Shopping (E-commerce): Ordering goods via the internet through websites or apps.
  • Teleshopping/Phone Orders: Placing orders over the phone.
  • Direct Sales: Sales representatives visiting homes or offices (e.g., medical representatives selling medicines to clinics, direct marketing agents).
• Key Idea: The essence of a market (exchange between buyer and seller) exists in many forms, facilitated by technology and different business models.

5. Markets and Equality:

• There is significant inequality within the market system.
• Small Traders vs. Large Retailers:
  • Small traders (like those in weekly markets or small neighbourhood shops) operate with limited capital, earn relatively small profits, and face intense competition.
  • Owners of large showrooms or shops in malls invest substantial capital, deal in branded/expensive goods, and often earn much higher profits.
• Producers vs. Intermediaries:
  • Often, the primary producer (e.g., a small farmer) gets only a small fraction of the final price paid by the consumer.
  • Intermediaries (like wholesalers) often make substantial profits due to their ability to buy in bulk, store goods, and control supply to retailers.
• Bargaining Power: Larger players (big companies, mall owners, wholesalers) generally have more bargaining power than small producers or retailers.
• Access to Credit: Access to loans and credit is easier for established businesses than for small, marginal traders or producers.
• Conclusion: While markets provide opportunities, the benefits are not distributed equally. Those with more resources (capital, storage, information) tend to gain more than those with fewer resources.

Key Terms Recap:

• Weekly Market: Temporary market held on a specific day.
• Mall: Large enclosed shopping complex, usually multi-storeyed.
• Wholesale: Buying and selling goods in large quantities, typically from producer to retailer.
• Retailer: A person or business that sells goods directly to the public/consumer.
• Chain of Markets: The interconnected series of markets through which goods pass from producer to consumer.

Multiple Choice Questions (MCQs):

1. Which type of market is characterized by temporary shops set up on a specific day of the week?
   a) Shopping Mall
   b) Neighbourhood Shop
   c) Weekly Market
   d) Online Market

2. Why are goods often cheaper in a weekly market compared to permanent shops?
   a) Goods are of lower quality.
   b) Sellers have lower overhead costs (no permanent rent, electricity etc.).
   c) Only non-branded goods are sold.
   d) Government provides subsidies to weekly market traders.

3. A 'Kirana' store selling groceries and daily need items near your house is an example of:
   a) A weekly market stall
   b) A shop in a shopping complex
   c) A neighbourhood shop
   d) A wholesale market

4. In the 'chain of markets', who typically buys goods in large quantities from producers and sells them to retailers?
   a) Consumer
   b) Retailer
   c) Wholesaler
   d) Producer

5. Shopping malls are most commonly found in:
   a) Rural areas only
   b) Small towns only
   c) Urban areas
   d) Coastal areas only

6. What is a major advantage of neighbourhood shops for consumers?
   a) They sell only branded goods.
   b) They often provide goods on credit (udhaar).
   c) They have the lowest prices for all items.
   d) They offer large entertainment zones.

7. The sequence through which goods travel from the place of production to the final consumer is known as:
   a) Retail network
   b) Wholesale distribution
   c) Chain of markets
   d) Production line

8. Which of the following is NOT necessarily a characteristic of a shopping mall?
   a) Air-conditioned building
   b) Presence of branded showrooms
   c) Facility for bargaining on prices
   d) Multi-storeyed structure

9. The concept of 'Markets Everywhere' highlights that:
   a) Only physical marketplaces are important.
   b) Buying and selling also happen through phone, internet, etc.
   c) All markets are equal in terms of profit.
   d) Weekly markets are declining rapidly.

10. Which statement best reflects the issue of 'Markets and Equality' discussed in the chapter?
    a) All participants in the market earn equal profits.
    b) Small traders often earn significantly less profit compared to large retailers or wholesalers.
    c) Producers always get the highest share of the final consumer price.
    d) Online markets have eliminated all inequalities.

Answer Key for MCQs:

1. c) Weekly Market
2. b) Sellers have lower overhead costs (no permanent rent, electricity etc.).
3. c) A neighbourhood shop
4. c) Wholesaler
5. c) Urban areas
6. b) They often provide goods on credit (udhaar).
7. c) Chain of markets
8. c) Facility for bargaining on prices
9. b) Buying and selling also happen through phone, internet, etc.
10. b) Small traders often earn significantly less profit compared to large retailers or wholesalers.

Make sure you understand the differences between the market types and the roles of different players in the chain of markets. The concept of inequality in the market is also an important takeaway. Revise these notes thoroughly.