NCERT 7th Class (CBSE) Social Science: Markets Around Us

Question: What is a market?

Answer: A market is a physical place where buyers and sellers meets and exchange goods, services and information. Market serves as a link between the producers and the consumers, thereby ensuring the distribution of goods and services in a society. Two types of activities takes place in market – buying and selling.

Question: Define barter system.

Answer: In ancient days, before the invention of money, people met in a market place to barter or exchange goods and services. For example: A cow could be bartered for 10 sacks of wheat, or 10 pots could be bartered for a bale of cotton.

Question: What are supermarkets?

Answer: Supermarkets or malls are very big, usually air-conditioned, shopping complexes that have shops selling a variety of goods and services. One of the main advantages of supermarket is the availability of most things under one roof. So consumers can buy their monthly provisions and the weekly vegetables and fruits from one place. They can also get other things like clothes and books from the same complex. Super markets also allows the customers the satisfaction of choosing things on their own.

Question: Give two examples of wholesale markets in India.

Answer: Koyambedu Market in Chennai and Azadpur Mandi in Delhi are wholesale markets for vegetables in India.

Question: Distinguish between department stores and chain stores.

Answer: Department Stores:  As the name suggests, has many sections or departments in it.

Chain Stores:  These stores usually sells goods of one kind and is normally managed by the manufacturers themselves or franchised. For example, the stores run across the country by companies like Bombay dyeing, Bata, Reebok and Kwality Ice Cream sell their own products.

Question: How have markets, and the methods of exchange, changed over time?

Answer: In ancient days, before the invention of money, people met in a market place to barter or exchange goods and services. A cow could be bartered for 10 sacks of wheat, or 10 pots could be bartered for a bale of cotton. But over time, the need was felt for a standard unit of exchange acceptable to all. So money was invented. Money is an item that is universally acceptable as a medium of exchange and a mean of payment. The exchange of goods and services for money is known as a transaction.

In today’s competitive globalized world, the selling of goods involves much more than just producing them and taking them to the market. It involves marketing, production, transportation, storage, selling and after-sale service.