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