Understanding Markets — Quiz

Q1. On, the chapter defines 'trade' as the buying, selling or exchange of goods and services. Which of the following BEST illustrates this definition?

• A. Spice merchants from Old Delhi selling cardamom to shopkeepers in Bengaluru and Dubai
• B. A farmer growing wheat in his own field for his family to eat
• C. A government school admitting students free of charge
• D. Children playing marbles on a neighbourhood street

Q2. Which of the following accounts of Hampi Bazaar is attributed to the Portuguese traveller Fernao Nuniz?

• A. 'The best-provided city in the world.'
• B. 'About 3000 women own and run all the shops in this market.'
• C. 'A flourishing trade in palm oil and sunflower oil.'
• D. 'There were craftsmen, also, working in their streets... golden jewels and gewgaws, rubies and diamonds and pearls.'

Q3. In the guava-cart story (Fig. 12.6), the seller fixes the price at ₹20/kg. Why is this NOT a workable price for the seller in the long run?

• A. The buyers refuse to come to the cart
• B. The government has banned prices below ₹50/kg
• C. It is too low to be profitable, and goods finish quickly as too many buyers crowd in
• D. Cold storage charges become higher than the selling price

Q4. Ravi visits a weekly haat with his mother and watches her bargain with a vegetable seller. According to, why do buyers and sellers negotiate in such markets?

• A. To impress other buyers in the market
• B. Because vegetable sellers do not know the cost of their produce
• C. Because the government fixes a different price every hour
• D. To arrive at a mutually agreeable price at which the transaction can be completed

Q5. Garment stores offer heavy discounts on woollen clothing at the end of the winter season. 'Think About It' invites this explanation. Which option BEST explains the discount?

• A. Government rules force shops to cut prices in February
• B. Woollen clothes become unsafe to wear after winter
• C. Imported woollens from West Asia flood the Indian market in March
• D. Demand for woollens falls as winter ends, while sellers still hold stock, so prices come down

Q6. Aarti orders a book from a shopping app while sitting at home in Lucknow; the book is dispatched from a warehouse in Hyderabad. According to, this transaction belongs to which type of market?

• A. Weekly haat
• B. Wholesale mandi
• C. International market
• D. Online market

Q7. The share or stock market. Why does the chapter group it separately from physical and online markets for goods?

• A. It is only open one day a week
• B. It accepts only foreign currency
• C. It is run entirely by the government
• D. It does not transact goods and services

Q8. According to Fig. 12.10 India primarily IMPORTS which of the following from West Asia?

• A. Aircraft and components
• B. Outsourced services like software
• C. Crude petroleum and fertilizers
• D. Vegetable oils

Q9. The 'Don't Miss Out' box states that in 2024 India was the world's largest importer of vegetable oils. Most of the palm oil came from which group of countries?

• A. Brazil, Argentina and Chile
• B. Saudi Arabia, UAE and Iran
• C. Germany, France and Italy
• D. Malaysia, Indonesia and Thailand

Q10. Fig. 12.11 shows a chain. In what order do goods generally flow in a physical market?

• A. Producer to wholesaler to retailer to consumer
• B. Consumer to retailer to wholesaler to producer
• C. Producer to consumer to wholesaler to retailer
• D. Wholesaler to producer to consumer to retailer

Q11. Priya's father runs a small kirana shop near their house. would BEST describe his role in the supply chain as a

• A. Wholesaler who buys large quantities directly from farms
• B. Distributor who only bridges wholesalers and other shopkeepers
• C. Retailer who sells smaller quantities for consumption, not resale
• D. Manufacturer of grocery items

Q12. How online markets differ from physical ones. Which of the following BEST describes an 'aggregator' as used in the chapter?

• A. A farmer who collects grain from neighbouring fields
• B. A cold storage that pools perishable goods from many producers
• C. A government office that monitors weights and measures
• D. A website or mobile app that organises and combines offers from multiple sellers and delivers to consumers

Q13. Surat in Gujarat is described as the centre of which industry, and what is its claim to fame?

• A. Software industry — South Asia's largest IT park
• B. Spice industry — Asia's largest spice mandi
• C. Steel industry — India's oldest steel plant
• D. Textile industry — Asia's oldest textile market

Q14. Aarti's grandmother needs a lifesaving heart medicine. The government has fixed a maximum price for it. Based why does the government do this?

• A. To make sure consumers are not charged unfairly high prices for essential lifesaving drugs
• B. To stop pharmaceutical companies from manufacturing the drug
• C. To encourage the export of the drug to other countries
• D. To replace the role of doctors in prescribing medicines

Q15. The government sets a minimum price at which essential agricultural products like wheat, paddy and maize can be sold. According to, this is done MAINLY to

• A. Encourage farmers to grow only cash crops like cotton
• B. Lower the price of food in retail markets
• C. Ensure that farmers do not incur losses on essential crops
• D. Increase the import of grains from other countries