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