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