Ncert Solutions for Class 12 Sociology Chapter 4: The Market as a Social Institution questions and answers
| Textbook | Ncert |
| Class | Class 12 |
| Subject | Sociology |
| Chapter | Chapter 4 |
| Chapter Name | The Market as a Social Institution ncert solutions |
| Category | Ncert Solutions |
| Medium | English |
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Question 1: What is meant by the phrase ‘invisible hand’?
Answer 1: The phrase “invisible hand” was popularized by the economist Adam Smith in his seminal work, The Wealth of Nations. It refers to the self-regulating nature of a free market economy, where individuals pursuing their own self-interest inadvertently contribute to the overall economic well-being of society.
When people act to maximize their own gain—such as earning profit or seeking efficiency—they unintentionally promote broader societal benefits like innovation, resource allocation, and economic growth. This process occurs without direct intervention or planning, as if guided by an unseen force—the “invisible hand.”
Question 2: How does a sociological perspective on markets differ from an economic one?
Answer 2: Adam Smith and other thinkers developed the ideas of modem economics. It is based on the idea that the economy can be studied as a separate part of society that operates according to its own laws, leaving out the larger social or political context in which market functions.
On the other hand, sociologists have tried to develop an alternative way of studying economic institutions and processes within the larger social frameworks. In this way, ; sociologists consider markets as social institution which are made in culturally specific ways. Sociologists maintain that economies are socially ‘embedded’.
Question 3: In what ways is a market – such as a weekly village market – a social institution?
Answer 3: A markеt, including a wееkly villagе markеt, is a social institution in thе following ways:
- Idеntity Formation: Pеoplе’s rolеs and idеntitiеs arе somеtimеs tiеd to thеir participation in markеts, impacting thеir social status.
- Social Intеractions: Markеts arе placеs whеrе pеoplе intеract, еxchangе goods, and еngagе in convеrsations, fostеring social connеctions.
- Norms and Rulеs: Markеts havе thеir own sеt of norms and rulеs govеrning transactions and bеhavior, which arе socially constructеd.
- Cultural Significancе: Markеts oftеn rеflеct thе local culturе through thе goods sold, traditional practicеs, and rituals.
- Economic Rolеs: Markеts providе livеlihoods to many individuals and familiеs, influеncing thе social and еconomic fabric of thе community.
Question 4: How do caste and kin networks contribute to the success of a business?
Answer 4: In the precolonial period on wards, India had an extensive trading connection, not only within the country but also outside. These trading connections were made by merchant groups who did extensive internal and external trades and mostly they were organized as a community based on their same caste or kinship and they did business on the basis of trust, loyalty and understanding that prevailed within their community.
An interesting illustration of the use of traditional joint family structure and kinship and caste networks to build their business can be seen in banking and trading activities of Chettiars of Tamil Nadu. They controlled trade and banking all over south-east Asia and Ceylon (new Sri Lanka) in the 19th century and operate as a joint family business.
This is a typical patriarchal structure of a joint family but they used to trust, unity and goodwill of kinship to build their connection. This gives its idea that Indians had their indigenous version of capitalism when they ran a business for profit, which centres around caste and kinship.
Question 5: In what ways did the Indian economy change after the coming of colonialism?
Answer 5: The Indian economy underwent profound changes with the advent of colonialism, particularly under British rule. Traditional industries, such as textiles, handicrafts, and agriculture, faced severe disruption due to the systematic exploitation of resources and policies favoring British economic interests.
India was transformed from a thriving manufacturing economy into a supplier of raw materials for British industries and a market for their finished goods, leading to the deindustrialization of local crafts and the collapse of small-scale industries. The colonial government introduced a land revenue system, such as the Zamindari system, which burdened farmers with high taxes and led to widespread poverty and indebtedness.
Infrastructure, like railways and ports, was developed primarily to facilitate resource extraction rather than for India’s development. This extractive economic model caused stagnation, unemployment, and a decline in traditional livelihoods, leaving India impoverished and dependent on British economic policies. The colonial legacy shaped India’s economic challenges even after independence.
Question 6: Explain the meaning of ‘commoditisation’ with the help of examples.
Answer 6: Commoditisation occurs when things that were earlier not traded in the market become commodities.
For example:
1. Labours or skills have become things that can be bought and sold.
2. Sale of human organs, such as kidneys by poor to cater to rich patients to earii money.
3. Traditionally, marriages were arranged by families but now professional marriage bureaus and websites help people to find brides and grooms and take a proper fees. Earlier rituals and ceremonies were planned out by elders in the family but now it is given as a contract to marriage planners to plan out the entire ceremony.
4. In earlier times, people could not have even thought that any one could sell drinking water or charge money for it. But today, we buy bottled water as a normal commodity i.e. a commodity we can buy and sell.
Question 7: What is a ‘status symbol’?
Answer 7: A status symbol is an object, activity, or possession that signifies a person’s social or economic status and is often used to display wealth, prestige, or power. It reflects societal values and can vary across cultures and time periods.
Examples:
- In modern society, luxury cars, designer clothing, expensive gadgets, or large houses are common status symbols.
- Historically, items like fine jewelry, land ownership, or exclusive memberships were considered status symbols.
Status symbols are not just about utility; they are often associated with exclusivity and serve as markers of distinction in a social hierarchy.
Question 8: What are some of the processes included under the label ‘globalisation’?
Answer 8: In the era of globalisation the world is becoming increasingly interconnected. Their interconnections are not only economic but also cultural and political. The process of globalisation involves a number of trends, especially the increase in international movement of commodities money, information, people and development in technology.
The main feature of globalisation is the increasing extension and integrations of markets around the globe. It means that changes in a market in one part of the globe may have a profound impact somewhere else far away.
For example—India’s booming software industry may face a slump if the U.S. economy does badly as happened after the 9/11 attacks on the World Trade Centre in New York leading to a loss of business and jobs there.
Question 9: What is meant by ‘liberalisation’?
Answer 9: ‘Libеralization’ rеfеrs to thе procеss of rеducing govеrnmеnt rеgulations and rеstrictions on еconomic activitiеs, particularly in thе arеas of tradе, invеstmеnt, and industry. It oftеn involvеs opеning up markеts to compеtition, rеducing tradе barriеrs, and allowing grеatеr forеign invеstmеnt.
In India, libеralization typically rеfеrs to thе еconomic rеforms initiatеd in thе еarly 1990s, which lеd to a significant shift toward a morе markеt-oriеntеd and opеn еconomy. Thеsе rеforms aimеd to stimulatе еconomic growth, attract forеign invеstmеnt, and modеrnizе various sеctors of thе Indian еconomy.
Question 10: In your opinion, will the long term benefits of liberalisation exceed its costs? Give reasons for your answer.
Answer 10: The changes that have been made under the liberalisation programme have stimulated economic growth and opened up Indian markets to foreign companies. Increasing foreign investment is supposed to help economic growth and employment. The privatisation of public companies is supposed to increase their efficiency and reduce the government’s burden of running these companies.
However, the impact of liberalisation has been mixed. Many people argue that liberalisation have had or will have a negative net impact on India. As I think, the costs and disadvantages will be more than the advantages and benefits, so as some sectors of Indian industry like software and information technology or agriculture like fish or fruit may benefit from access to a global market, but other sectors like automobiles, electronics or oilseeds will lose because they cannot compete with foreign products and producers.