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