Understanding Markets Class 7 Notes

Understanding Markets Class 7 Notes

Understanding Markets Class 7 Notes

1. Market: A place where people buy and sell goods and services.

2. Trade: The buying and selling or exchange of goods and services between people or countries.

3. Needs: In economics, something that a person requires to survive, such as food, water, clothing, and shelter.

4. Wants: In economics, something that a person desires but is not essential for survival.

5. Price: The amount at which a buyer is willing to buy, and a seller is willing to sell particular goods or services.

6. Inputs for production: Materials or resources that are used in the production of goods and services.

7. Manufacturer: A person or company that makes goods for sale.

8. Export: Selling goods or services produced in one country to a buyer in another country.

9. Import: Buying goods or services from other countries and bringing them into one's own country.

10. Physical Market: A market where buyers can meet the seller physically to purchase goods or services in exchange for money.

11. Online Market: A market where buyers and sellers can transact from a convenient location using shopping applications or websites.

12. Domestic Market: A market where goods and services are bought and sold within the geographical boundaries of a country.

13. International Market: A market where trade occurs across borders of countries, involving the export and import of goods and services.

14. Cold storage: Specialised warehouses or designed to maintain specific low temperatures to preserve perishable goods.

15. Wholesale Market: A market where goods are bought in large quantities from producers or manufacturers and then sold to retailers.

16. Retail Market: A market where goods are sold in smaller quantities to final consumers for consumption rather than resale.

17. Distributor: Individuals or businesses who supply goods from manufacturers and wholesalers to retailers.

18. Aggregator: A website or mobile application that organises and combines offers from multiple sellers and sells them to consumers in one place.

19. Demand: Quantity of a product or service that consumers are willing and able to purchase at a particular price at a given time.

20. Supply: Quantity of a product or service that sellers are willing and able to sell at a particular price at a given time.

21. Public goods: Service or commodity that is accessible or available to all members of a society. Their present use does not diminish their availability for future use.

22. What is Market?

1. Physical place or online platform for buying and selling
2. Provides goods and services (to individual, household, business)
3. Connects people, traditions and ideas
4. Platform for cultural and economic exchange
5. Essential for economic prosperity
6. Makes access to goods and services for everyone
7. Involves - primary activities (raw material), secondary activities (manufacturing), tertiary activities (services)

23. Example from Past: Hampi Bazar

1. Prosperous market in Vijayanagar empire
2. Known for abundance and variety of goods
3. Foreign travellers give details of - grains, silk, gems
4. Craftsmen and variety of products - signify strong economy

24. Price Dynamics in Markets

1. Transaction involves agreement of a buyer and a seller
2. Price determined by both buyer and seller
3. Negotiation and bargaining of price take place
4. Price affected by number of buyers and sellers
5. Price stabilises at acceptable levels (for both) after negotiation

25. Product Certification

1. FSSAI - Government tested quality and safety
2. ISI (BIS) - Electrical appliances, Construction materials
3. AGMARK - Agricultural products
4. BEE STAR - Energy efficiency rating on electronics, more star, more efficient use

26. Types of Market

1. Physical market and online market, domestic and international markets, wholesale and retail markets

27. Physical and Online Markets

1. Physical

1. Sellers and buyers meet face-to-face
2. Exchange of goods and services for money
3. Examples - Weckly market, local shops, malls

2. Online

1. No need of physical meeting
2. Buyers-sellers use electronic platforms
3. They may be thousands of kilometers apart
4. Use of apps, websites for selling/ buying goods and services

28. Domestic and International Markets

1. Domestic - buying/selling within country: Example - buying paper from local mills.
2. International - buying/selling across countries. Example -export-import of goods/services.

29. Wholesale and Retail Markets

1. Large quantity/directly from producers/warehouse for storing goods/services to retailers.
2. From retailers directly to consumers.

30. Export and Import

1. Imports vegetables from Malaysia, Indonesia, Thailand
2. Imports - Diamond, electrical equipement, crude petroleum
3. Export - Aircraft component, engineering goods, pharma products

31. Distribution and Storage

1. For storage - Cold storage (perishable good - fruits, vegetables), warehouses (normal goods)
2. Distribution - Manufacturer to wholesaler to retailer to consumer

32. Role of wholesaler

1. Finished good from factory to wholesale market
2. Wholesaler to big retailers and small shopkeepers
3. Assess demand of goods from retailers
4. Ensures supply

33. Supply Chain in Textile

1. Surat known for textile hub
2. Raw cotton supplied by nearby states, fabric made
3. Stages - weaving, dyeing, finishing

34. Surat: Trade Centre

1. Largest textile centre
2. Largest diamond industry
3. Fluorished due to location on west coast
4. Developed port, road network
5. Skilled artisans, ample labour force

35. Role of Market

1. Economic and social life

36. Economic life

1. Important for trade between producer and consumer
2. Helps in access to goods and services
3. Provides buyers for artisans
4. Enhances consumer preferences.
5. Promotes fair pricing, protects buyer's/seller's interest

37. Social life

1. Establish and strengthen relation between buyer/seller
2. Develops trusted relation with service provider
3. Provides job and facilitate cultural exchange.
4. Example - Mother's market in Imphal (Manipur)

38. Role of Government

General

1. Monitors market interaction
2. Ensures fair pricing (price control)
3. Protects interests of buyers/sellers
4. Controls/Regulates supply and quality of goods and services

39. Quality Control

Assessing Product Quality

1. While buying-Price, size and quality matter
2. Label provides important information
3. Check quality standard and certification.

40. Quality/Fair Market/Public Good/Mitigation

Quality/Mitigation

1. Regulation for quality and testing
2. Regulation for negative environmental effects
3. Price control to motivate producer/protect consumer

41. Fair market/public good

1. Monitor weights and measures to prevent malpractice
2. Provides public goals like parks, roads, etc.

42. Role of Government/Market in Product Quality

1. Role of online reviews and feedback
2. Impact of demand and supply
3. Role of supply chain
4. Role in exchange of ideas and traditions
5. Regulation by government regarding quality and fair price