Economics

Q. 7. Explain various ways by which consumers are exploited by the producers or wholesalers.
Or
Describe briefly any six forms of consumer exploitation.

Ans.

1. Adulteration: Adulteration means mixing or substituting undesirable materials in food. This causes heavy loss to the customers; they suffer from monetary loss as well as spoil their health.
2. False claim: Sellers make false claim about the durability and quality of their product through advertisements.
3. Under measurement: Sellers generally give under measured goods and charge for the actual quantity.
4. Hoarding and black marketing: Trader generally holds the stock of essential commodities to create artificial scarcity in the market so that they can sell their commodities at higher price.
5. Substandard goods: Sellers usually sell inferior quality goods in order to make more profit.
6. High price: Sellers who are dealing in necessities generally charge arbitrary prices.
7. Duplicate Articles: In the name of genuine parts or goods, duplicate items are sold to the consumers.
8. Lack of safety devices: Electronic appliances produced locally lack the required inbuilt safeguard which causes harm to the consumers.

Q. 8.Explain the importance of consumer awareness in protecting the interest of consumers.

Ans.

1. The need for consumer awareness was felt because out of their selfishness, both the manufacturers and traders can go to any extent. They can charge high prices, stoop to underweight and under measurement methods.
2. The need for consumer awareness was felt all the more when some unscrupulous traders began to play with the health of the nation by indulging in adulteration of edible oils, milk, butter ghee, etc.

Q. 9.What are the factors which cause exploitation of consumers?

Ans.

1. Limited information : For a correct decisions and choice about a product, a consumer needs full information about the price, quality, durability, composition, etc. of the product. In the absence of full and correct information, a consumer may get exploited.
2. Limited supplies: When the supply of goods is less than their demand, the prices may go high and may also encourage the tendency of hoarding. As a consequence, consumers will get exploited.
3. Limited competition: When there is limited competition with regard to production, i.e., when producers are few and can control and restrict the supply of a product, there is possibility of manipulation in prices.
4. Low literacy: Illiteracy causes ignorance which leads to exploitation of consumers. The level of awareness in our country is generally low.

Q. 10.Write a brief note on COPRA .

Ans. Consumers Protection Act 1986 was passed by the parliament in 1986 and came into force with effect from July 1 1987 for the protection of the consumers from unscrupulous producers and dishonest traders.
Its features:
Applies to all goods and services unless specifically exempted by the union government.

1. Covers all the sectors whether private, public or cooperative.
2. Provisions of the Act are compensatory in nature.
3. Enshrines the consumer’s right.
4. Empower consumers seeking discontinuances of certain unfair and restrictive trade practices, defects or deficiencies in services, and stopping in services, or withdrawal of hazardous goods from the market.

Q. 11. Who are consumers? What are the duties of the consumers?

Ans.Any person who buys anything in the market and uses it is called a consumer.
Duties of consumers are:

1. It is the responsibility of the consumer to be more alert and questioning about the price and quality of goods and services that he/she uses.
2. To assert and act to ensure that he/she gets a fair deal.
3. To organize together as consumers to develop the strength and influence to promote and protect their interests.
4. To purchase quality marked products such as ISI, AGMARK etc.
5. To ask for cash memo for the items purchased whenever possible.
6. To make complaint for genuine grievances.
7. Consumer must know their rights and must exercise them.