Question 1

Q1: 1. What is meant by the phrase 'invisible hand'?

Accepted Answer

The phrase 'invisible hand' was coined by the political economist Adam Smith in his book The Wealth of Nations. It refers to the self-regulating nature of a market economy. Smith argued that the market is composed of numerous individual transactions. While each individual acts out of their own ratio...

Question 2

Q10: 10. In your opinion, will the long term benefits of liberalisation exceed its costs? Give reasons for your answer.

Accepted Answer

Based on the text, the impact of liberalisation is mixed, and whether its long-term benefits will exceed its costs is a subject of intense debate. The chapter provides arguments for both sides. Potential Benefits:    Economic Growth: Proponents argue that liberalisation stimulates economic growth by...

Question 3

Q2: 2. How does a sociological perspective on markets differ from an economic one?

Accepted Answer

A sociological perspective on markets differs significantly from a traditional economic one in its approach and focus.    Economic Perspective: Modern economics, following thinkers like Adam Smith, tends to study the economy as a separate sphere of society that operates according to its own internal...

Question 4

Q3: 3. In what ways is a market – such as a weekly village market – a social institution?

Accepted Answer

A weekly village market, or haat, is a social institution because its significance extends far beyond purely economic transactions. It serves as a central feature of social and economic organization in many agrarian societies.    Social Intercourse: For many visitors, the primary reason to attend th...

Question 5

Q4: 4. How do caste and kin networks contribute to the success of a business?

Accepted Answer

Caste and kin networks are crucial to the success of a business, particularly for traditional merchant communities in India, for several reasons:    Building Trust: Business and trade often operate on trust. Businessmen are more likely to trust others from their own community or kin group. This trus...

Question 6

Q5: 5. In what ways did the Indian economy change after the coming of colonialism?

Accepted Answer

The arrival of colonialism brought about major upheavals and fundamental changes in the Indian economy.    Disruption of Traditional Industries: Colonial policies led to the decline of traditional industries. A well-known example is the demise of the Indian handloom industry, which could not compete...

Question 7

Q6: 6. Explain the meaning of 'commoditisation' with the help of examples.

Accepted Answer

Commoditisation, or commodification, is the process by which things that were previously not traded in a market become commodities that can be bought and sold for a price. It transforms goods, services, or even ideas and relationships into objects of market exchange. Examples from the text include:...

Question 8

Q7: 7. What is a 'status symbol'?

Accepted Answer

The term 'status symbol' was coined by sociologist Max Weber. It refers to a product, possession, or service that an individual buys and uses to signify their social and economic status to others. In modern societies, consumption is not just about fulfilling needs; it is also a way to create and com...

Question 9

Q8: 8. What are some of the processes included under the label 'globalisation'?

Accepted Answer

Globalisation is a complex process through which the world becomes increasingly interconnected economically, culturally, and politically. The key processes included under this label are:    Increased International Movement: There is a significant increase in the cross-border movement of commodities,...

Question 10

Q9: 9. What is meant by 'liberalisation'?

Accepted Answer

Liberalisation refers to a set of economic policies aimed at reducing government control and promoting market-based processes. In India, the policy of liberalisation was initiated in the late 1980s and marked a shift away from state-led development. Key components of liberalisation include:    Priva...

NCERT Solutions