Economics SS1 3rd test 2026
  • 1. Which of the following is an example of a retailer?
A) Factory
B) Supermarket
C) Farm
D) Quarry
  • 2. Merchandising refers to:
A) The planning, buying, and selling of goods for profit
B) Manufacturing goods
C) Transportation of goods
D) Banking activities
  • 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) Produce goods
C) Provide employment
D) Earn profit through the sale of goods
  • 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) Interest
B) Capital
C) Profit
D) Discount
  • 8. Goods purchased for resale are called:
A) Equipment
B) Assets
C) Liabilities
D) Merchandise
  • 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) Producer → Factory
D) Consumer → Producer
  • 11. A wholesaler is a:
A) Producer
B) Consumer
C) Middleman who buys in bulk and sells to retailers
D) Transporter
  • 12. The final user of goods is called the:
A) Retailer
B) Wholesaler
C) Distributor
D) Consumer
  • 13. Which of the following is a function of distribution?
A) Manufacturing
B) Mining
C) Production
D) Storage of goods
  • 14. An agent in distribution acts on behalf of:
A) Consumers
B) Government
C) Employees
D) Producers
  • 15. Which means of transport is most suitable for bulky goods over long distances?
A) Bicycle
B) Walking
C) Motorcycle
D) Rail transport
  • 16. The shortest channel of distribution is:
A) Producer → Retailer → Consumer
B) Producer → Agent → Consumer
C) Producer → Consumer
D) Producer → Wholesaler → Retailer → Consumer
  • 17. International marketing refers to:
A) Retail trade only
B) Marketing activities carried out across national boundaries
C) Production of goods
D) Selling goods within a country
  • 18. The main objective of international marketing is to:
A) Reduce production
B) Expand business into foreign markets
C) Increase taxation
D) Restrict trade
  • 19. Which of the following is a form of international trade?
A) Manufacturing
B) Farming
C) Local retailing
D) Importing goods
  • 20. Goods brought into a country from another country are called: 1
A) Entrepot trade
B) Exports
C) Re-exports
D) Imports
  • 21. Which of the following is a barrier to international marketing?
A) Better l D.
B) Trade agreements
C) Foreign exchange restrictions
D) Improved transportation
  • 22. One advantage of international marketing is:
A) Reduced competition
B) Increased sales opportunities
C) Limited market size
D) Higher trade barriers
  • 23. An organization that promotes international trade among nations is the:
A) Trade Union
B) World Trade Organization
C) Local Government
D) Police Force
  • 24. Warehousing can best be defined as:
A) The transportation of goods
B) The production of goods for consumers
C) The packaging 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) Manufacturing goods
C) Risk bearing
D) Price stabilization
  • 26. Goods stored in a bonded warehouse are:
A) Awaiting payment of customs duties
B) Meant for local production
C) Perishable goods only
D) Exempted from customs duties permanently
  • 27. Which type of warehouse is owned by manufacturers or large-scale traders for their exclusive use?
A) Bonded warehouse
B) Private warehouse
C) Public warehouse
D) Cooperative warehouse
  • 28. The process of checking and recording goods entering a warehouse is known as:
A) Dispatching
B) Increases production costs
C) Grading
D) Receiving
  • 29. One advantage of warehousing is that it:
A) Prevents transportation
B) Ensures continuous supply of goods
C) Increases production costs
D) Reduces market availability
  • 30. Which type of warehouse is available for use by the general public for a fee?
A) Bonded warehouse
B) Public warehouse
C) Cooperative warehouse
D) Private warehouse
  • 31. A bonded warehouse is usually supervised by:
A) Retailers
B) Manufacturers
C) Customs authorities
D) Consumers
  • 32. Warehousing helps to protect goods against:
A) Consumption
B) Advertising
C) Production
D) Theft and damage
  • 33. A warehouse owned by a group of people for their mutual benefit is called:
A) Bonded warehouse
B) Cooperative warehouse
C) Government warehouse
D) Cold storage warehouse
  • 34. Cold storage warehouses are mainly used for:
A) Machinery
B) Perishable goods
C) Building materials
D) Stationery
  • 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) Restrict production
C) Increase taxation
D) Eliminate trade
  • 37. One major function of a market union is:
A) Providing transport services
B) Protecting members' interests
C) Manufacturing goods
D) Fixing examination question
  • 38. Which of the following is an example of a market union?
A) Central Bank
B) Insurance Company
C) Ministry of Education
D) Traders' Association
  • 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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