Class 7 Economics – Chapter 3
A SHIRT IN THE MARKET
MCQs + Practice Worksheet

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📝 PART A: MULTIPLE CHOICE QUESTIONS (MCQs)

Q1. The journey of a shirt begins with:

A) Factory owner
B) Trader
C) Cotton farmer
D) Retailer

Answer: C

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Q2. Why did Swapna sell cotton to the trader?

A) Higher price offered
B) No market nearby
C) Loan taken from the trader
D) Poor quality cotton

Answer: C

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Q3. Who earns the least profit in the chain of markets?

A) Factory owner
B) Trader
C) Retailer
D) Cotton farmer

Answer: D

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Q4. Which of the following converts cotton into cloth?

A) Farmer
B) Trader
C) Factory
D) Shopkeeper

Answer: C

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Q5. Why are factory workers paid low wages?

A) Less work done
B) Company wants more profit
C) Workers are unskilled
D) Government fixes wages

Answer: B

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Q6. Which group has the most power in the market?

A) Small farmers
B) Factory workers
C) Large companies
D) Retailers

Answer: C

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Q7. Cotton cultivation is expensive because:

A) Free seeds are used
B) No labour required
C) High cost of inputs
D) Guaranteed profits

Answer: C

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📄 PART B: VERY SHORT ANSWER QUESTIONS

Q1. Who is a cotton farmer?

Answer: A person who grows cotton crops.

Q2. What is inequality?

Answer: Unequal distribution of income and resources.

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✍️ PART C: SHORT ANSWER QUESTIONS

Q1. Why do cotton farmers take loans?

Answer:
Cotton farmers take loans to buy seeds, fertilizers and pesticides. They often do not have enough savings. Banks do not easily provide loans to small farmers.

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Q2. Write two problems faced by factory workers.

Answer:
1) Low wages 2) Long working hours and unsafe conditions

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🧠 PART D: THINK & ANSWER

Q. Why do large companies earn more profit than farmers?

Answer:
Large companies have more money and resources. They control production and prices. Farmers depend on traders and companies. Therefore, large companies earn more profit.

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🎯 EXAM TIP:
Remember the flow: Cotton Farmer → Trader → Factory → Market. Use keywords like loan, profit, inequality, wages.

Prepared by Shaktimatha Learning 🌟
Class 7 Economics • MCQs • Worksheet • Exam Ready