CHAPTER -5
THE MARKETS AROUND US
A. Answer the following questions briefly:
Q.1. Define market.
A.1. A place where sellers sell their products and buyers buy the products.
Q.2. What is retail marketing?
A.2. A type of farming under which farmers produce for self consumption.
Q.3. What is regulated marketing?
A.3. A market where the goods are sold directly to the consumer.
Q.4. What is the role of a marketing committee in a regulated market?
A.4. A market which is started under the law either for any specific commodity or for
a group of commodities.
Q.5. Define cashless economy.
A5. Fixes the market charges.
(i) Infrastructure as a utility to every citizen.
(i) Governance and services on demand
(ii) Digital empowerment of citizens
Q.6. What is the basic objective of Digital India Programme?
A.6. (i) Infrastructure as a utility to every citizen.
(ii) Governance and services on demand
(iii) Digital empowerment of citizens
B. Answer the followimg questions in detail:
Q.1. What are the defects of unregulated markets? Explain.
1. (i) The conditions in the mandis or the markets are very poor. The method of transaction is generally against the interests of the farmer.
(ii) The number of intermediaries and middlemen between the farmer and the consumer are too many and the margin going to them too is large.
(iii) The farmers do not get information about the ruling price. As a result the farmers have to accept whatever price is given to them by the traders.
Q.2. 'The system of regulated markets has been found to be very useful'. Explain.
A.2. The system of regulated markets has been found to be very useful in removing fraudulent practices followed by brokers and commission agents and in standardising market practices. They have helped farmers to secure fair prices for their produce and to come to the market without fear of being cheated. They have helped in using standard measures and weights throughout the country.
Hence, it is the policy of the government to convert all markets In the country into the regulated type.
Q.3. Explain the factors on which the access of market depends.
3. (i) Availability of the Market: In most of the areas the regulated markets
are not available. So the farmers have no option. They have to sell their produce to the moneylenders.
(ii) Convenience : It is not convenient for all the farmers to take their produce
to the regulated markets. Most of the farmers are very poor and they don't possess any means of transport.
(iii) Credit: The average Indian farmer is so poor that he has to take advances from the moneylenders. So he has no other option. So he is forced to sell his output to the moneylender or to the trader so as to clear his debts.
(iv) Quality: In the regulated markets the products of farmers are graded and
then the price is paid according to the grade. The grading system is in the
hands of corrupt food inspectors who demand bribes for proper grading.
Q.4. Analayse the importance of cashless economy.
A.4. Importance of Cashless Transaction:
Taxation: with lesser availability of hard cash at homes and more in banks, there is lesser scope of hiding income and evading taxation and when there are more tax payers it ultimately leads to a lesser rate of taxation for the whole country.
Transparency and accountability : it becomes a lot easier to track the flow of money with every transaction being recorded with the buyer, selleras well as regulatory bodies, making the system much more transparentand complaint. In the long term it leads to better business and investment prospects for the economy as a whole.
Reduced red tapism and bureaucracy: with cashless transactionsthrough electronic means the wire transters are tracked and people are accountable which in turn reduces corruption and improves service time.
Less availability of cash for illegal activities: when people are encouraged to go cashless, there is lesser cash available with the people and there won't be a means to invest in other activities to use the idle cash. Channels like hawala (illegal remittance) will ultimately suffer the brunt of a cashless economy.
No fear of being robbed : unlike carrying cash and letting everyone know that there could be something worth snatching.
Tracking of expenses : it becomes easier to determine how much was spent where.
Easier accounting: Direct payment to bank account. You don't need to go every day to deposit cash to your current account.
Easier transactions : We can easily do any transaction with security.