Page 151 - Understanding Economics for Class 10

2. Explain the ways in which consumers are exploited in the market.
Ans. The various ways by which people may be exploited in the market are–
(i) Goods sold in the market are sometimes not measured or weighted correctly.
(ii) Sometimes traders add charges that were not mentioned before.
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(iii) Sometimes adulterated/defective goods are sold.
(iv) Electronic goods produced locally lack the required inbuilt safeguards, which may cause
accidents.
(v) Sellers sometimes mislead consumers by giving information about the products, price,
quality, safety, expiry date, etc.
(vi) Consumers are often harassed in getting telephone connections or licensed items.
(vii) Many suppliers do not provide satisfactory after-sale service in case of home appliances
or electronic equipment.
3. How do the large companies often manipulate the markets? Explain with an example.
Ans. Large companies with huge wealth, power and approach manipulate the market in various
ways. They often try to eliminate their competitors by lowering down the price of various
products. They often spread false information among the consumers to attract them.
For example, a company for years sold powder milk for babies all over the world as the
most scientific product claiming this to be better than mother’s milk. After long years of
struggle the company finally accepted that it had been making false claims.

4. There is a great need for acquiring the knowledge and skill to become a well-informed
consumer”. Support this statement.
Ans. Consumers should learn to be well-informed because only then they could avoid exploitation
and unfair trade practices that happen in the marketplace in various ways.
For example, sometimes shopkeepers weigh less than what they should. Sometimes traders
sell adulterated/defective goods. Sometimes large companies try to manipulate the market
by spreading false information.
They do so to attract ignorant consumers. When we as consumers become conscious of
our rights, while purchasing various goods and services, we will be able to discriminate
and make informed choices. This calls for acquiring the knowledge and skill to become a
well-informed consumer.

5. How does ‘Right to Safety’ help consumers? Explain with an example.
Ans. (i) Safety is everyone’s right. While using many goods and services, we as consumers,
have the right to be protected against the marketing of goods and delivery of services
that are hazardous to life and property.
(ii) Producers need to strictly follow the required safety rules and regulations. There are
many goods and services that we purchase that require special attention to safety.
(iii) For example, pressure cookers have a safety valve which, if it is defective, can cause
a serious accident. The manufactures of the safety valve have to ensure high quality.
6. How can a consumer exercise his right to choice?
Ans. Any consumer who receives a service in whatever capacity, regardless of age, gender and
nature of service, has the right to choose, whether to continue to receive the service or not.
For example, suppose you want to buy a shampoo and the shop owner says that he can sell
the shampoo only if you buy a body wash. If you are not interested in buying the body
wash your right to choice is denied.
So many times you are forced to buy things that you may not wish to as you are left with no
choice. But every consumer in a capitalist company has the right to exercise his right to choice.
E-134 Economics Class X