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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) Quarry
C) Supermarket
D) Factory
  • 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) Transports 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) Collect taxes
C) Produce goods
D) Provide employment
  • 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) Employees
B) Government
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) Merchandise
B) Equipment
C) Liabilities
D) Assets
  • 9. Distribution is the process of:
A) Advertising products
B) Producing goods
C) Moving goods and services from producers to consumers
D) Manufacturing goods
  • 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) Transporter
B) Consumer
C) Middleman who buys in bulk and sells to retailers
D) Producer
  • 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) Manufacturing
B) Production
C) Mining
D) Storage of goods
  • 14. An agent in distribution acts on behalf of:
A) Consumers
B) Employees
C) Government
D) Producers
  • 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 → Retailer → Consumer
B) Producer → Consumer
C) Producer → Agent → Consumer
D) Producer → Wholesaler → Retailer → Consumer
  • 17. International marketing refers to:
A) Production of goods
B) Marketing activities carried out across national boundaries
C) Retail trade only
D) Selling goods within a country
  • 18. The main objective of international marketing is to:
A) Increase taxation
B) Expand business into foreign markets
C) Restrict trade
D) Reduce production
  • 19. Which of the following is a form of international trade?
A) Manufacturing
B) Importing goods
C) Local retailing
D) Farming
  • 20. Goods brought into a country from another country are called: 1
A) Entrepot trade
B) Exports
C) Imports
D) Re-exports
  • 21. Which of the following is a barrier to international marketing?
A) Foreign exchange restrictions
B) Better l D.
C) Trade agreements
D) Improved transportation
  • 22. One advantage of international marketing is:
A) Increased sales opportunities
B) Reduced competition
C) Limited market size
D) Higher trade barriers
  • 23. An organization that promotes international trade among nations is the:
A) Police Force
B) Local Government
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 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) Risk bearing
C) Manufacturing goods
D) Price stabilization
  • 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) Public warehouse
B) Private warehouse
C) Bonded warehouse
D) Cooperative warehouse
  • 28. The process of checking and recording goods entering a warehouse is known as:
A) Increases production costs
B) Receiving
C) Grading
D) Dispatching
  • 29. One advantage of warehousing is that it:
A) Prevents transportation
B) Reduces market availability
C) Increases production costs
D) Ensures continuous supply of goods
  • 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) Customs authorities
B) Manufacturers
C) Retailers
D) Consumers
  • 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) Cooperative warehouse
B) Government warehouse
C) Bonded warehouse
D) Cold storage warehouse
  • 34. Cold storage warehouses are mainly used for:
A) Building materials
B) Machinery
C) Stationery
D) Perishable goods
  • 35. Market structure refers to:
A) Government policies
B) The production process
C) The characteristics and organization of a market
D) The location of markets only
  • 36. A market union is primarily formed to:
A) Restrict production
B) Promote cooperation among members in a market
C) Increase taxation
D) Eliminate trade
  • 37. One major function of a market union is:
A) Fixing examination question
B) Manufacturing goods
C) Providing transport services
D) Protecting members' interests
  • 38. Which of the following is an example of a market union?
A) Central Bank
B) Traders' Association
C) Insurance Company
D) Ministry of Education
  • 39. Market unions often help to:
A) Ban trading activities
B) Eliminate all competition
C) Maintain order and discipline in the market
D) Increase imports
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