Question

State with reasons whether the following statements are True or False.
1. Industrial revolution has given birth to market.
2. Marketing develops unemployment.
3. Machinery is not an industrial product.
4. Price means exchange value.
5. The standard of product of a service can be decided by price.

Answer 1

1. Industrial revolution has given birth to market- True

Explanation:
Industrial revolution has resulted in increased productivity by adopting new method of production. The goods were now produced with the anticipation of demand. While productivity itself was enough to fulfill the demands of consumers, availability of goods and services was poor because consumers were scattered over distant places. The emergence of different channels of distribution helped in overcoming this problem as the goods are now made available to consumers as and when required. Subsequently, these channels have given birth to salesmen, middlemen and advertisers. Thus, it would be correct to say that industrial revolution gave birth to marketing.

2. Marketing develops unemployment- False

Explanation:
Marketing involves many activities like transport, production, packaging, grading, advertising, branding, etc. All these activities require skilled manpower. Thus, marketing creates employment opportunities.

3. Machinery is not an industrial product- False

Explanation:
Industrial goods are those that are used for the production of other goods. Since machinery is used in producing goods, it is regarded as an industrial product.

4. Price means exchange value- True

Explanation:
Price refers to the exchange value of goods and services, i.e. it is the amount that is to be paid in order to get goods or services. The exchange value can be decided in cash or kind. For example, the value of a packet of Maggi is Rs. 10. The pricing of a commodity must be such that it reflects the economic, social and psychological benefits received by the consumer.

5. The standard of product or a service can be decided by price- True

Explanation:
It is always said you can judge the quality of product by its price. Generally, goods or services that cost less are of inferior quality, whereas goods of superior quality are priced higher.