Understanding Markets Class 7 MCQ
hardUnderstanding Markets Class 7 MCQ
Understanding Markets Class 7 MCQ
Question 1.
A farmer is selling apples at a local market. He notices that the price of apples has increased significantly. What is the most likely reason for this increase?
(a) The supply of apples has decreased due to a poor harvest.
(b) The demand for apples has decreased.
(c) The government has imposed a price ceiling on apples.
(d) The farmer has decided to sell fewer apples.
Answer:
(a) The supply of apples has decreased due to a poor harvest.
Question 2.
A new online grocery delivery service has been launched in a city. What is one potential advantage of this online market for consumers?
(a) Higher prices compared to physical stores.
(b) Limited product availability.
(c) Convenience of shopping from home.
(d) Requirement to pay in cash only.
Answer:
(c) Convenience of shopping from home.
Question 3.
In an international market, which of the following activities is most likely to occur?
(a) A local farmer sells produce only within his town.
(b) A company exports electronics to another country.
(c) A retailer sells products exclusively online.
(d) A consumer buys groceries from a nearby store.
Answer:
(b) A company exports electronics to another country.
Question 4.
Why might a luxury brand maintain high prices despite having a limited number of buyers?
(a) The product is in high demand, and the brand wants to increase supply.
(b) The brand aims to maintain an image of exclusivity and high quality.
(c) The government regulates the prices of luxury goods.
(d) There is a surplus of luxury goods in the market.
Answer:
(b) The brand aims to maintain an image of exclusivity and high quality.
Question 5.
What is the primary function of a market?
(a) To provide a place for social gatherings
(b) To facilitate the exchange of goods and services
(c) To regulate government policies
(d) To create competition among businesses
Answer:
(b) To facilitate the exchange of goods and services
Question 6.
Which of the following best describes a physical market?
(a) A market that operates solely online
(b) A market where buyers and sellers meet in person
(c) A market that only sells agricultural products
(d) A market that is limited to international transactions
Answer:
(b) A market where buyers and sellers meet in person
Case Study
There are some districts in India that are famous for growing tomatoes. However, during some seasons, the situation is not good for farmers. With a large quantity of harvest, there are reports of farmers throwing away their produce and all their hard work going to waste.
Question 1.
What is a likely reason for farmers throwing away their produce?
(a) There is a high demand for tomatoes.
(b) They are unable to sell their excess harvest at a profitable price.
(c) They have too many buyers.
(d) The tomatoes are of high quality.
Answer:
(b) They are unable to sell their excess harvest at a profitable price.
Question 2.
Farmers are always able to sell their entire harvest without any waste.
(a) True
(b) False
Answer:
(b) False
Question 3.
When farmers have an excess supply of tomatoes, they may need to rely on ............ to help distribute their produce effectively.
Answer:
wholesalers
Question 4.
What could be a potential solution to prevent farmers from wasting their tomatoes?
(a) Increasing the price of tomatoes
(b) Reducing the number of farmers growing tomatoes
(c) Establishing better supply chains and storage facilities
(d) Encouraging consumers to buy less
Answer:
(c) Establishing better supply chains and storage facilities
Question 5.
The situation described indicates that market demand and supply are perfectly balanced.
(a) True
(b) False
Answer:
(b) False