Class 7 Social Science — Chapter 12: Understanding Markets

What you'll learn

• ▸Definition and Function of Markets
• ▸Elements of a Market Transaction
• ▸Price Determination
• ▸Physical vs. Online Markets
• ▸Domestic vs. International Markets
• ▸Introduction to the Stock Market

Chapter Summary

--- PAGE 1 --- Understanding Markets CHAPTER 12 Prosperity emanates from the market that develops when people need goods and services that they can't create themselves. – Adam Smith, 18th century economist The Big Questions 1. What are markets and how do they function? 2. What is the role of markets in people's lives? 3. What role does the government play in markets? 4. How can consumers assess the quality of goods and services they purchase? In the picture on the following page you will see people buying and selling goods — vegetables, fruits, clothes, groceries, mobile phones, refrigerators, and so on. These goods result from various types of economic activities — primary, secondary, and tertiary—that you studied in Grade 6. But how do these goods reach us? Fig. 12.1 --- PAGE 2 --- © NCERT not to be republished Fig. 12.2 --- PAGE 3 --- © NCERT not to be republished --- PAGE 4 --- Needs: In economics, a need is something that a person …

Practice Questions from this Chapter

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1. Explore different types of markets. Get Solution →
2. Explain how prices are set. Get Solution →
3. Define needs versus wants. Get Solution →
4. According to the text, what is a place where people buy and sell goods called? Get Solution →
5. In economics, what is defined as something a person requires to survive, such as food and water? Get Solution →
6. What is the term for the buying and selling or exchange of goods and services between people or countries? Get Solution →
7. What is the term for selling goods or services produced in one country to a buyer in another country? Get Solution →
8. A market where goods and services are bought and sold within the geographical boundaries of a country is called a what? Get Solution →

Did you know?

• 💡 The Silk Road was an ancient network of trade routes connecting the East and West for over 1,500 years.
• 💡 Floating markets in Thailand allow people to buy and sell goods directly from boats on canals.
• 💡 Before money was invented, people traded goods and services directly through a system called barter.
• 💡 The price of gold changes every day because people around the world buy and sell it constantly.
• 💡 The very first item ever sold online was a used textbook in 1994.

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