Social Science (087) — AI-generated practice question

Power Imbalance Between Producers and Consumers

Markets do not work fairly when producers are few and powerful while consumers are scattered and purchase in small amounts. Large companies with huge wealth, power, and reach can manipulate markets in ways individual consumers cannot counter.

Example 1 – Baby Powder Milk Company: A company sold powdered milk for babies worldwide, falsely claiming through media that it was more scientific and better than mother's milk. It took years of struggle before the company was forced to admit it had been making false claims.

Example 2 – Cigarette Manufacturers: A long legal battle was needed to make cigarette companies publicly accept that their product causes cancer.

These examples show that market forces alone cannot protect consumers because powerful companies can spread misinformation, delay accountability, and exploit the information gap. Therefore, rules, regulations, and consumer protection laws are essential.

Source: The Consumer in the Marketplace, Chapter 5

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• The question asks you to analyse — so don't just describe; link each example to the power imbalance idea.
• Key textbook phrase to use: "companies with huge wealth, power and reach can manipulate the market."
• Both examples must show false claims + long struggle — that's what examiners look for.
• End with a clear concluding line on why market forces alone fail — this earns the analytical mark.
• Do not add extra examples or go beyond the passage; CBSE rewards textbook-grounded answers.