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Indian Economy

Chapter 3: Markets Around Us

 


🔑 Key Concepts

1. What is a Market?

  • A market is a place where buyers and sellers come together for exchange of goods/services.

  • It's not always a physical place—markets can also be online, wholesale, or local fairs.

🛒 2. Types of Markets

Type Description Example
Weekly Market Temporary setups once a week in a locality. No shops. Village haats, local bazaar on Sundays
Shops in Neighborhood Fixed shops open daily. Sell essential goods. Grocery, chemist, tailor
Shopping Complexes & Malls Multibrand stores, branded items, fixed prices. D-Mart, Big Bazaar, malls
Online Market (E-Commerce) Sellers and buyers trade via the internet. Amazon, Flipkart

🔄 3. How Goods Reach You: Supply Chain

  • A chain of markets exists where goods pass from producer → wholesaler → retailer → consumer.

  • Example: A farmer sells wheat → mill grinds it → wholesaler → grocery store → your home.

💰 4. Sellers & Consumers

  • Retailers buy from wholesalers, sell to final consumers.

  • Wholesalers deal in bulk with fixed buyers (shopkeepers, hotels).

  • Consumers are the end-users.

Farmers and weavers often don’t get fair prices due to middlemen or lack of bargaining power.

💼 5. Employment in Markets

  • Both self-employed (street vendors, shopkeepers) and hired workers (salespersons, helpers) work in markets.

  • Informal sector workers often have no job security or benefits.

⚖️ 6. Need for Regulation

  • Many people are exploited (e.g., long hours, low pay).

  • Government laws like:

    • Minimum Wages Act

    • Consumer Protection Act

    • Labour laws protect rights of both workers and consumers.

🧠 Summary Points

  • Markets vary in size and nature: weekly → shops → malls → online.

  • Products pass through multiple hands from producer to consumer.

  • Not all earn equally — small producers often get less, big brands earn more.

  • Government plays a role to ensure fairness through laws & policies.

📝 MCQs for Practice

1. Which of these is a weekly market?
(a) D-Mart
(b) Online app
(c) Village haat
(d) Supermarket
✅ Answer: (c)

2. Who buys goods in bulk and sells to retailers?
(a) Consumer
(b) Wholesaler
(c) Shopkeeper
(d) Manufacturer
✅ Answer: (b)

3. Which law helps protect consumers?
(a) Factory Act
(b) Consumer Protection Act
(c) Sales Tax Act
(d) Labour Rights Act
✅ Answer: (b)

4. Which of the following is NOT a type of market?
(a) Weekly market
(b) Employment market
(c) Online market
(d) Shopping mall
✅ Answer: (b)