Important Questions and Answers for Class 7 Social Science Chapter 12 Understanding Markets 2025-26

```html

1. Multiple choice questions.

Q1. Which of the following is NOT a function of markets?

• (a) Facilitating buying and selling of goods
• (b) Connecting producers and consumers
• (c) Enforcing strict dress codes
• (d) Allowing negotiation of prices

Answer: (c) Enforcing strict dress codes.

Q2. In which type of market do buyers and sellers transact using websites or apps, without meeting face-to-face?

• (a) Physical market
• (b) Online market
• (c) Wholesale market
• (d) Retail market

Answer: (b) Online market.

Q3. Who supplies goods from manufacturers to retailers?

• (a) Consumers
• (b) Distributor
• (c) Aggregator
• (d) Wholesaler

Answer: (b) Distributor.

Q4. The FSSAI mark on food packets assures that the food is:

• (a) Low in sugar
• (b) Approved as safe by the government
• (c) Imported from another country
• (d) Made of recycled materials

Answer: (b) Approved as safe by the government.

2. Very Short Answer (VSA).

Q1. What is a market?

Answer: A market is a place where buyers and sellers come together to exchange goods and services, either physically or online.

Q2. What does the term 'trade' mean?

Answer: Trade means buying and selling or exchanging goods and services between people or countries.

Q3. What is meant by 'cold storage'?

Answer: Cold storage is a warehouse facility used to preserve perishable goods at low temperatures.

Q4. Name one certification mark found on agricultural products in India.

Answer: AGMARK is the certification mark found on agricultural products in India.

3. Short Answer Questions.

Q1. State two differences between physical market and online market.

Answer: In a physical market, buyers and sellers meet face-to-face to exchange goods or services, such as in weekly bazaars or local shops. In contrast, online markets use websites or apps for transactions, allowing buyers and sellers to deal from different locations at any time.

Q2. How do wholesalers and retailers differ in the market chain?

Answer: Wholesalers purchase goods in large quantities directly from producers or manufacturers and sell them in bulk to retailers. Retailers, on the other hand, buy smaller quantities from wholesalers and sell directly to consumers.

Q3. Briefly explain the role of the government in regulating markets.

Answer: The government can regulate markets by controlling prices of essential goods, ensuring product quality and safety standards, and providing public goods like parks and roads. These actions protect buyers and sellers and ensure fair practices.

Q4. What kinds of information should a consumer check on a packaged food label before buying?

Answer: Consumers should check the net quantity, best before date, MRP, manufacturer’s details, nutrition panel, batch number, allergen information, FSSAI mark, and list of ingredients on a packaged food label.

3. Fill in the Blanks Questions.

Q1. The government of India issues the _______ mark for electrical and construction products to ensure standard quality.

Answer: ISI

Q2. _______ are goods or services provided by the government for public use, like parks and roads.

Answer: Public goods

Q3. The process of buying goods from another country is called _______.

Answer: Import

Q4. In the market, the amount at which a buyer is willing to buy and a seller is willing to sell is called _______.

Answer: Price

4. Long Answer Questions.

Q1. How do markets affect people’s daily lives? Explain with suitable examples from the chapter.

Answer: Markets affect people’s daily lives by providing essential goods and services needed for survival and comfort. They connect producers and consumers and reflect social and cultural practices. For example, Mother’s Market (Ima Keithal) in Imphal supports thousands of women and enriches community life. Markets also influence what products are made based on consumer demand.

1. Provide access to a wide range of goods and services.
2. Promote social interaction and cultural exchange.
3. Offer employment and income opportunities.

Q2. Why does the government intervene in market prices? Describe with two real-world examples.

Answer: The government intervenes in market prices to protect the interests of buyers and sellers, maintain affordability, and ensure fairness. For example, it sets minimum support prices for crops to secure farmers’ income and fixes ceiling prices on medicines to keep them affordable for the public. Such measures prevent exploitation and ensure basic needs are met.

1. Setting minimum support price for crops.
2. Capping the prices of essential medicines.

Q3. Explain with examples how negotiation plays a role in determining the price of goods in different types of markets.

Answer: Negotiation is common in physical markets, like weekly bazaars, where buyers and sellers bargain for mutually agreeable prices. For example, a vendor may initially ask for ₹80/kg for guavas, but after negotiation, agrees to sell at ₹60/kg. In contrast, online or organized retail shops usually have fixed prices with little scope for bargaining due to standardized systems.

1. Negotiation common in local markets.
2. Less common in online or departmental stores.

Q4. Describe the journey of cotton from farms to finished fabric in stores, as explained through the Surat textile market example.

Answer: In the Surat textile market, raw cotton from nearby states is sent to factories for weaving and dyeing. The processed fabrics are then sold in bulk through wholesalers. Retailers purchase from wholesalers and offer the finished fabric in stores to consumers both within India and internationally. Port, highway, and railway networks support this supply chain.

1. Raw cotton transported to factories in Surat.
2. Cotton is processed into fabric (weaving, dyeing).
3. Fabrics sent to wholesale markets and then on to retailers’ shops.

4. True or False Questions.

Q1. The price of goods in every market is always fixed and cannot be changed by negotiation.

Answer: False

Q2. Online markets require buyers and sellers to meet physically.

Answer: False

Q3. Distributors connect wholesalers and retailers by supplying goods.

Answer: True

Q4. ISI mark is found only on agricultural products.

Answer: False

5. Match the Following Questions.

Q1. Match the following.

Questions	Answer
1. Wholesaler	(A) Buys in bulk from producers
2. Retailer	(B) Sells in small quantities to consumers
3. Aggregator	(C) App/website collecting offers from sellers
4. Cold storage	(D) Preserves perishable goods at low temperature

Answer: 1 - A, 2 - B, 3 - C, 4 - D

Why learning about understanding markets helps students grow

With Understanding markets Class 7 Extra Questions and answers, you build real-world awareness of how buying and selling touch our lives. These clear examples and well-explained answers make important market concepts easy for every Social Science learner.

Get all you need for Understanding markets Class 7 Important Questions and Answers, covering facts, reasoning, and application. Explore market types, price mechanisms, and government involvement in a simple, student-friendly format to help with school assessments and projects.

Our collection also supports quick revision with Understanding Markets Class 7 MCQ and thoughtful long answers. Whether reviewing Social Science Class 7 Chapter 12 Question Answer or reading notes, these resources boost conceptual clarity for all students.

```