Consider the following statements comparing street vendors and market shop owners: 1. Street vendors have no security of tenure, while market shop owners have permanent licenses. 2. Street vendors always employ more workers than permanent shop owners. 3. Both groups operate within the urban economy, though with different levels of security. Which of the following statements are correct ?

The correct option is (c). Explanation Urban livelihoods are broadly categorized based on the nature of employment, security, and regulation. Street vending is a prominent part of the informal urban economy, characterized by self-employment and vulnerability, whereas permanent market shops typically operate within the formal or semi-formal sector with regulatory compliance. Statement-wise Analysis: - Statement 1 is Correct. Street vendors generally lack security of tenure and are often subject to eviction or relocation by authorities, although legislation like the Street Vendors Act, 2014, aims to address this. In contrast, market shop owners usually hold permanent municipal licenses and operate from fixed structures, granting them security of tenure. - Statement 2 is Incorrect. Street vendors are typically self-employed or rely on family labour due to limited capital and small scale of operation. Permanent shop owners are more likely to employ workers and assistants. The assertion that street vendors "always" employ more workers is factually wrong. - Statement 3 is Correct. Both groups are essential components of the urban economy, contributing to the distribution of goods and services. However, they operate with distinct differences in financial security, legal protection, and access to social security benefits. Key Takeaway: The primary distinction between street vendors and market shop owners lies in the security of tenure and the formalization of their business; vendors face high vulnerability in the informal sector, while shop owners enjoy regulatory protection and permanence.

NCERT Class 6 Economics — Chapter 2: Urban Livelihoods

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Consider the following statements comparing street vendors and market shop owners:

Street vendors have no security of tenure, while market shop owners have permanent licenses.
Street vendors always employ more workers than permanent shop owners.
Both groups operate within the urban economy, though with different levels of security.

Which of the following statements are correct ?

Official previous-year question

Verified 1 Aug 2026.

Options

A1 and 2 only
B2 only
C1 and 3 only
D1, 2 and 3

Did you get this right?

Solution

The correct option is (c).

Explanation

Urban livelihoods are broadly categorized based on the nature of employment, security, and regulation. Street vending is a prominent part of the informal urban economy, characterized by self-employment and vulnerability, whereas permanent market shops typically operate within the formal or semi-formal sector with regulatory compliance.

Statement-wise Analysis:

Statement 1 is Correct. Street vendors generally lack security of tenure and are often subject to eviction or relocation by authorities, although legislation like the Street Vendors Act, 2014, aims to address this. In contrast, market shop owners usually hold permanent municipal licenses and operate from fixed structures, granting them security of tenure.
Statement 2 is Incorrect. Street vendors are typically self-employed or rely on family labour due to limited capital and small scale of operation. Permanent shop owners are more likely to employ workers and assistants. The assertion that street vendors "always" employ more workers is factually wrong.
Statement 3 is Correct. Both groups are essential components of the urban economy, contributing to the distribution of goods and services. However, they operate with distinct differences in financial security, legal protection, and access to social security benefits.

Key Takeaway:
The primary distinction between street vendors and market shop owners lies in the security of tenure and the formalization of their business; vendors face high vulnerability in the informal sector, while shop owners enjoy regulatory protection and permanence.

Your note

More from Chapter 2: Urban Livelihoods

With reference to the working conditions of street vendors, consider the following 1. They have to organise their own work, including planning purchases and setting up shops. 2. They possess permanent licenses that protect them from being dismantled by the police. 3. Food items sold by them are often prepared at home by their families who clean and sort them. Which of the following statements are correct ?

medium

Consider the following statements regarding the proposed government measures for street vendors: 1. The government has decided to completely ban all forms of street vending in urban areas. 2. Hawking zones have been suggested for towns and cities. 3. Mobile vendors are to be allowed to move around freely. Which of the following statements are correct ?

medium

Consider the following statements regarding permanent shops in the market: 1. They are given a licence to do business by the Municipal Corporation. 2. The shop owners themselves decide the weekly closing day without any regulation. 3. Permanent shop owners are prohibited from employing any workers. Which of the following statements are correct ?

medium

In the context of casual employment in the unorganized sector, which of the following is a common consequence for workers who demand better pay or working conditions?

easy

Which of the following is NOT a characteristic of casual employment in factories?

easy

Keep practising Chapter 2: Urban Livelihoods

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The correct option is (c).

Explanation

Statement-wise Analysis:

Statement 1 is Correct. Street vendors generally lack security of tenure and are often subject to eviction or relocation by authorities, although legislation like the Street Vendors Act, 2014, aims to address this. In contrast, market shop owners usually hold permanent municipal licenses and operate from fixed structures, granting them security of tenure.
Statement 2 is Incorrect. Street vendors are typically self-employed or rely on family labour due to limited capital and small scale of operation. Permanent shop owners are more likely to employ workers and assistants. The assertion that street vendors "always" employ more workers is factually wrong.
Statement 3 is Correct. Both groups are essential components of the urban economy, contributing to the distribution of goods and services. However, they operate with distinct differences in financial security, legal protection, and access to social security benefits.