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Economics SS1 3rd test 2026
Contributed by: College
  • 1. Which of the following is an example of a retailer?
A) Farm
B) Factory
C) Supermarket
D) Quarry
  • 2. Merchandising refers to:
A) Transportation of goods
B) Banking activities
C) Manufacturing goods
D) The planning, buying, and selling of goods for profit
  • 3. A merchant is a person who:
A) Produces goods
B) Buys and sells goods
C) Repairs goods
D) Transports goods
  • 4. The main aim of merchandising is to:
A) Produce goods
B) Collect taxes
C) Provide employment
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) Capital
B) Discount
C) Profit
D) Interest
  • 8. Goods purchased for resale are called:
A) Assets
B) Liabilities
C) Merchandise
D) Equipment
  • 9. Distribution is the process of:
A) Manufacturing goods
B) Producing goods
C) Moving goods and services from producers to consumers
D) Advertising products
  • 10. Which of the following is a channel of distribution?
A) Producer → Consumer
B) Consumer → Producer
C) Government → Consumer
D) Producer → Factory
  • 11. A wholesaler is a:
A) Consumer
B) Producer
C) Transporter
D) Middleman who buys in bulk and sells to retailers
  • 12. The final user of goods is called the:
A) Retailer
B) Distributor
C) Wholesaler
D) Consumer
  • 13. Which of the following is a function of distribution?
A) Production
B) Storage of goods
C) Manufacturing
D) Mining
  • 14. An agent in distribution acts on behalf of:
A) Consumers
B) Producers
C) Employees
D) Government
  • 15. Which means of transport is most suitable for bulky goods over long distances?
A) Walking
B) Bicycle
C) Rail transport
D) Motorcycle
  • 16. The shortest channel of distribution is:
A) Producer → Consumer
B) Producer → Agent → Consumer
C) Producer → Wholesaler → Retailer → Consumer
D) Producer → Retailer → 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) Expand business into foreign markets
B) Restrict trade
C) Reduce production
D) Increase taxation
  • 19. Which of the following is a form of international trade?
A) Manufacturing
B) Importing goods
C) Farming
D) Local retailing
  • 20. Goods brought into a country from another country are called: 1
A) Imports
B) Exports
C) Entrepot trade
D) Re-exports
  • 21. Which of the following is a barrier to international marketing?
A) Trade agreements
B) Foreign exchange restrictions
C) Improved transportation
D) Better l D.
  • 22. One advantage of international marketing is:
A) Higher trade barriers
B) Increased sales opportunities
C) Limited market size
D) Reduced competition
  • 23. An organization that promotes international trade among nations is the:
A) Trade Union
B) Local Government
C) Police Force
D) World Trade Organization
  • 24. Warehousing can best be defined as:
A) The packaging of goods
B) The production of goods for consumers
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) Manufacturing goods
B) Storage of goods
C) Risk bearing
D) Price stabilization
  • 26. Goods stored in a bonded warehouse are:
A) Exempted from customs duties permanently
B) Awaiting payment of customs duties
C) Perishable goods only
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) Receiving
B) Increases production costs
C) Grading
D) Dispatching
  • 29. One advantage of warehousing is that it:
A) Increases production costs
B) Prevents transportation
C) Ensures continuous supply of goods
D) Reduces market availability
  • 30. Which type of warehouse is available for use by the general public for a fee?
A) Cooperative warehouse
B) Public 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) Advertising
B) Theft and damage
C) Consumption
D) Production
  • 33. A warehouse owned by a group of people for their mutual benefit is called:
A) Cooperative warehouse
B) Cold storage warehouse
C) Bonded warehouse
D) Government warehouse
  • 34. Cold storage warehouses are mainly used for:
A) Machinery
B) Stationery
C) Perishable goods
D) Building materials
  • 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) Promote cooperation among members in a market
B) Eliminate trade
C) Increase taxation
D) Restrict production
  • 37. One major function of a market union is:
A) Manufacturing goods
B) Protecting members' interests
C) Providing transport services
D) Fixing examination question
  • 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) Ban trading activities
B) Increase imports
C) Maintain order and discipline in the market
D) Eliminate all competition
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