Economics SS1 3rd test 2026
  • 1. Which of the following is an example of a retailer?
A) Supermarket
B) Quarry
C) Factory
D) Farm
  • 2. Merchandising refers to:
A) Manufacturing goods
B) Banking activities
C) The planning, buying, and selling of goods for profit
D) Transportation of goods
  • 3. A merchant is a person who:
A) Transports goods
B) Produces goods
C) Repairs goods
D) Buys and sells goods
  • 4. The main aim of merchandising is to:
A) Provide employment
B) Produce goods
C) Collect taxes
D) Earn profit through the sale of goods
  • 5. Which of the following is a merchandising activity?
A) Retailing
B) Mining
C) Farming
D) Fishing
  • 6. A retailer purchases goods mainly from:
A) Consumers
B) Employees
C) Government
D) Wholesalers
  • 7. The difference between the cost price and selling price is known as:
A) Profit
B) Interest
C) Capital
D) Discount
  • 8. Goods purchased for resale are called:
A) Liabilities
B) Merchandise
C) Assets
D) Equipment
  • 9. Distribution is the process of:
A) Moving goods and services from producers to consumers
B) Producing goods
C) Advertising products
D) Manufacturing goods
  • 10. Which of the following is a channel of distribution?
A) Producer → Consumer
B) Government → Consumer
C) Consumer → Producer
D) Producer → Factory
  • 11. A wholesaler is a:
A) Producer
B) Consumer
C) Transporter
D) Middleman who buys in bulk and sells to retailers
  • 12. The final user of goods is called the:
A) Wholesaler
B) Consumer
C) Retailer
D) Distributor
  • 13. Which of the following is a function of distribution?
A) Storage of goods
B) Mining
C) Manufacturing
D) Production
  • 14. An agent in distribution acts on behalf of:
A) Employees
B) Producers
C) Government
D) Consumers
  • 15. Which means of transport is most suitable for bulky goods over long distances?
A) Walking
B) Bicycle
C) Motorcycle
D) Rail transport
  • 16. The shortest channel of distribution is:
A) Producer → Agent → Consumer
B) Producer → Wholesaler → Retailer → Consumer
C) Producer → Consumer
D) Producer → Retailer → Consumer
  • 17. International marketing refers to:
A) Marketing activities carried out across national boundaries
B) Retail trade only
C) Selling goods within a country
D) Production of goods
  • 18. The main objective of international marketing is to:
A) Reduce production
B) Increase taxation
C) Expand business into foreign markets
D) Restrict trade
  • 19. Which of the following is a form of international trade?
A) Manufacturing
B) Farming
C) Importing goods
D) Local retailing
  • 20. Goods brought into a country from another country are called: 1
A) Exports
B) Imports
C) Entrepot trade
D) Re-exports
  • 21. Which of the following is a barrier to international marketing?
A) Improved transportation
B) Better l D.
C) Foreign exchange restrictions
D) Trade agreements
  • 22. One advantage of international marketing is:
A) Reduced competition
B) Higher trade barriers
C) Increased sales opportunities
D) Limited market size
  • 23. An organization that promotes international trade among nations is the:
A) Local Government
B) World Trade Organization
C) Trade Union
D) Police Force
  • 24. Warehousing can best be defined as:
A) The production of goods for consumers
B) The transportation of goods
C) The storage of goods until they are needed for use or sale
D) The packaging of goods
  • 25. Which of the following is not a function of warehousing?
A) Manufacturing goods
B) Price stabilization
C) Risk bearing
D) Storage of goods
  • 26. Goods stored in a bonded warehouse are:
A) Perishable goods only
B) Awaiting payment of customs duties
C) Exempted from customs duties permanently
D) Meant for local production
  • 27. Which type of warehouse is owned by manufacturers or large-scale traders for their exclusive use?
A) Private warehouse
B) Cooperative warehouse
C) Bonded warehouse
D) Public warehouse
  • 28. The process of checking and recording goods entering a warehouse is known as:
A) Grading
B) Increases production costs
C) Dispatching
D) Receiving
  • 29. One advantage of warehousing is that it:
A) Prevents transportation
B) Reduces market availability
C) Ensures continuous supply of goods
D) Increases production costs
  • 30. Which type of warehouse is available for use by the general public for a fee?
A) Private warehouse
B) Public warehouse
C) Bonded warehouse
D) Cooperative warehouse
  • 31. A bonded warehouse is usually supervised by:
A) Manufacturers
B) Consumers
C) Customs authorities
D) Retailers
  • 32. Warehousing helps to protect goods against:
A) Consumption
B) Production
C) Theft and damage
D) Advertising
  • 33. A warehouse owned by a group of people for their mutual benefit is called:
A) Bonded warehouse
B) Cold storage warehouse
C) Government warehouse
D) Cooperative warehouse
  • 34. Cold storage warehouses are mainly used for:
A) Perishable goods
B) Building materials
C) Stationery
D) Machinery
  • 35. Market structure refers to:
A) The production process
B) The characteristics and organization of a market
C) The location of markets only
D) Government policies
  • 36. A market union is primarily formed to:
A) Restrict production
B) Increase taxation
C) Promote cooperation among members in a market
D) Eliminate trade
  • 37. One major function of a market union is:
A) Fixing examination question
B) Manufacturing goods
C) Providing transport services
D) Protecting members' interests
  • 38. Which of the following is an example of a market union?
A) Insurance Company
B) Central Bank
C) Traders' Association
D) Ministry of Education
  • 39. Market unions often help to:
A) Eliminate all competition
B) Maintain order and discipline in the market
C) Increase imports
D) Ban trading activities
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