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Economics SS1 3rd test 2026
Contributed by: College
  • 1. Which of the following is an example of a retailer?
A) Quarry
B) Farm
C) Factory
D) Supermarket
  • 2. Merchandising refers to:
A) Manufacturing goods
B) The planning, buying, and selling of goods for profit
C) Transportation of goods
D) Banking activities
  • 3. A merchant is a person who:
A) Repairs goods
B) Transports goods
C) Buys and sells goods
D) Produces 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) Fishing
C) Mining
D) Farming
  • 6. A retailer purchases goods mainly from:
A) Employees
B) Government
C) Wholesalers
D) Consumers
  • 7. The difference between the cost price and selling price is known as:
A) Profit
B) Discount
C) Interest
D) Capital
  • 8. Goods purchased for resale are called:
A) Merchandise
B) Assets
C) Liabilities
D) Equipment
  • 9. Distribution is the process of:
A) Moving goods and services from producers to consumers
B) Manufacturing goods
C) Advertising products
D) Producing goods
  • 10. Which of the following is a channel of distribution?
A) Producer → Factory
B) Producer → Consumer
C) Government → Consumer
D) Consumer → Producer
  • 11. A wholesaler is a:
A) Consumer
B) Middleman who buys in bulk and sells to retailers
C) Producer
D) Transporter
  • 12. The final user of goods is called the:
A) Distributor
B) Wholesaler
C) Retailer
D) Consumer
  • 13. Which of the following is a function of distribution?
A) Mining
B) Storage of goods
C) Production
D) Manufacturing
  • 14. An agent in distribution acts on behalf of:
A) Producers
B) Government
C) Consumers
D) Employees
  • 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 → Wholesaler → Retailer → Consumer
B) Producer → Agent → Consumer
C) Producer → Consumer
D) Producer → Retailer → Consumer
  • 17. International marketing refers to:
A) Production of goods
B) Selling goods within a country
C) Retail trade only
D) Marketing activities carried out across national boundaries
  • 18. The main objective of international marketing is to:
A) Reduce production
B) Expand business into foreign markets
C) Restrict trade
D) Increase taxation
  • 19. Which of the following is a form of international trade?
A) Importing goods
B) Local retailing
C) Manufacturing
D) Farming
  • 20. Goods brought into a country from another country are called: 1
A) Exports
B) Entrepot trade
C) Re-exports
D) Imports
  • 21. Which of the following is a barrier to international marketing?
A) Foreign exchange restrictions
B) Improved transportation
C) Better l D.
D) Trade agreements
  • 22. One advantage of international marketing is:
A) Higher trade barriers
B) Reduced competition
C) Limited market size
D) Increased sales opportunities
  • 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 storage of goods until they are needed for use or sale
B) The production of goods for consumers
C) The transportation of goods
D) The packaging of goods
  • 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) Exempted from customs duties permanently
B) Perishable goods only
C) Awaiting payment of customs duties
D) Meant for local production
  • 27. Which type of warehouse is owned by manufacturers or large-scale traders for their exclusive use?
A) Bonded warehouse
B) Private warehouse
C) Cooperative 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) Receiving
D) Dispatching
  • 29. One advantage of warehousing is that it:
A) Ensures continuous supply of goods
B) Prevents transportation
C) Reduces market availability
D) Increases production costs
  • 30. Which type of warehouse is available for use by the general public for a fee?
A) Public warehouse
B) Cooperative warehouse
C) Bonded warehouse
D) Private warehouse
  • 31. A bonded warehouse is usually supervised by:
A) Customs authorities
B) Retailers
C) Manufacturers
D) Consumers
  • 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) Cold storage warehouse
B) Cooperative warehouse
C) Government warehouse
D) Bonded 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) Government policies
B) The location of markets only
C) The characteristics and organization of a market
D) The production process
  • 36. A market union is primarily formed to:
A) Restrict production
B) Eliminate trade
C) Promote cooperation among members in a market
D) Increase taxation
  • 37. One major function of a market union is:
A) Protecting members' interests
B) Manufacturing goods
C) Fixing examination question
D) Providing transport services
  • 38. Which of the following is an example of a market union?
A) Traders' Association
B) Insurance Company
C) Ministry of Education
D) Central Bank
  • 39. Market unions often help to:
A) Ban trading activities
B) Maintain order and discipline in the market
C) Eliminate all competition
D) Increase imports
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