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Economics SS1 3rd test 2026
Contributed by: College
  • 1. Which of the following is an example of a retailer?
A) Factory
B) Supermarket
C) Quarry
D) Farm
  • 2. Merchandising refers to:
A) Banking activities
B) The planning, buying, and selling of goods for profit
C) Manufacturing goods
D) Transportation of 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) Produce goods
B) Earn profit through the sale of goods
C) Provide employment
D) Collect taxes
  • 5. Which of the following is a merchandising activity?
A) Retailing
B) Mining
C) Fishing
D) Farming
  • 6. A retailer purchases goods mainly from:
A) Consumers
B) Government
C) Wholesalers
D) Employees
  • 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) Liabilities
B) Assets
C) Equipment
D) Merchandise
  • 9. Distribution is the process of:
A) Manufacturing goods
B) Advertising products
C) Producing goods
D) Moving goods and services from producers to consumers
  • 10. Which of the following is a channel of distribution?
A) Government → Consumer
B) Producer → Consumer
C) Consumer → Producer
D) Producer → Factory
  • 11. A wholesaler is a:
A) Producer
B) Transporter
C) Middleman who buys in bulk and sells to retailers
D) Consumer
  • 12. The final user of goods is called the:
A) Retailer
B) Consumer
C) Distributor
D) Wholesaler
  • 13. Which of the following is a function of distribution?
A) Storage of goods
B) Production
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) Rail transport
B) Bicycle
C) Motorcycle
D) Walking
  • 16. The shortest channel of distribution is:
A) Producer → Consumer
B) Producer → Wholesaler → Retailer → Consumer
C) Producer → Agent → Consumer
D) Producer → Retailer → Consumer
  • 17. International marketing refers to:
A) Selling goods within a country
B) Marketing activities carried out across national boundaries
C) Retail trade only
D) Production of goods
  • 18. The main objective of international marketing is to:
A) Restrict trade
B) Increase taxation
C) Reduce production
D) Expand business into foreign markets
  • 19. Which of the following is a form of international trade?
A) Local retailing
B) Importing goods
C) Farming
D) Manufacturing
  • 20. Goods brought into a country from another country are called: 1
A) Exports
B) Re-exports
C) Imports
D) Entrepot trade
  • 21. Which of the following is a barrier to international marketing?
A) Better l D.
B) Improved transportation
C) Foreign exchange restrictions
D) Trade agreements
  • 22. One advantage of international marketing is:
A) Reduced competition
B) Limited market size
C) Higher trade barriers
D) Increased sales opportunities
  • 23. An organization that promotes international trade among nations is the:
A) Local Government
B) Police Force
C) World Trade Organization
D) Trade Union
  • 24. Warehousing can best be defined as:
A) The transportation of goods
B) The production of goods for consumers
C) The storage of goods until they are needed for use or sale
D) The packaging of goods
  • 25. Which of the following is not a function of warehousing?
A) Storage of goods
B) Manufacturing goods
C) Price stabilization
D) Risk bearing
  • 26. Goods stored in a bonded warehouse are:
A) Perishable goods only
B) Exempted from customs duties permanently
C) Meant for local production
D) Awaiting payment of customs duties
  • 27. Which type of warehouse is owned by manufacturers or large-scale traders for their exclusive use?
A) Cooperative warehouse
B) Private warehouse
C) Bonded warehouse
D) Public warehouse
  • 28. The process of checking and recording goods entering a warehouse is known as:
A) Dispatching
B) Grading
C) Receiving
D) Increases production costs
  • 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) Public warehouse
B) Bonded warehouse
C) Cooperative warehouse
D) Private warehouse
  • 31. A bonded warehouse is usually supervised by:
A) Customs authorities
B) Manufacturers
C) Consumers
D) Retailers
  • 32. Warehousing helps to protect goods against:
A) Theft and damage
B) Advertising
C) Production
D) Consumption
  • 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) Machinery
C) Perishable goods
D) Stationery
  • 35. Market structure refers to:
A) The location of markets only
B) Government policies
C) The characteristics and organization of a market
D) The production process
  • 36. A market union is primarily formed to:
A) Increase taxation
B) Restrict production
C) Eliminate trade
D) Promote cooperation among members in a market
  • 37. One major function of a market union is:
A) Protecting members' interests
B) Fixing examination question
C) Providing transport services
D) Manufacturing goods
  • 38. Which of the following is an example of a market union?
A) Traders' Association
B) Central Bank
C) Ministry of Education
D) Insurance Company
  • 39. Market unions often help to:
A) Ban trading activities
B) Increase imports
C) Eliminate all competition
D) Maintain order and discipline in the market
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