2

1 Producers need to satisfy human needs and wants.

Which example is a human need?

A clothing B entertainment C social media D transport

2 The table shows numbers of workers (000s) employed in industries in a country.

(000s)

agriculture 1 000
engineering 4 000
mining 600
steelmaking 3 000
8 600

What is the total number of workers employed in the secondary sector?

A 1 600 000 B 3 000 000 C 4 000 000 D 7 000 000

3 The diagram shows a number of ways in which specialisation occurs.

What is X?

A construction B country C primary D tertiary

4 A producer of steel bars is dependent on commerce because

A employees need good working conditions. B money from sales is kept in banks.
C the business is a limited liability company. D the products need to be fit for purpose.
5 The diagram shows stages of production

What do X and Y represent?

A commerce and direct services B construction and manufacturing

C extraction and processing D trade and aids to trade
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6 What is a function of a retailer?

A buying from a wholesaler and selling to consumers

B offering cash and carry services to small-scale traders
C providing credit facilities to businesses
D storing goods ready for distribution to small shops

7 A multiple chain store selling clothing decides to expand from a regional chain to a national chain.

Which advantage will this expansion achieve?

A employing fewer staff B offering consumers one-stop shopping
C reducing purchasing power D using cost-effective national advertising

8 The diagram shows a bar code.

Which statement about bar codes is correct?

A A bar code increases human errors.

B A bar code attracts more customers.
C Bar code data is quickly available to retailers.
D Bar codes provide helpful information to consumers

9 What is an advantage of specialisation to factory workers?

A better craftsmanship B fewer tools used C improved skills D over-production

10 Which statement shows how direct services assist industry and commerce?

A Advertisers promote products of industry and commerce.

B Banks provide finance for industry and commerce.
C Education helps to produce a skilled workforce.
D Transport moves foods and raw materials.

11 Which type of retail outlet involves selling goods from machines?

A automatic vending B electronic point of sale

C speciality store D street market traders
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12 A retailer engaged in ecommerce may continue to operate a number of physical stores so that it
can offer
A a delivery system. B an online customer review service.
C face-to-face customer service. D payment by credit card

13 The cash price for a motorcycle is $1500. The credit price is 5% deposit of cash price plus 10
instalments of $170.

How much does the credit purchase cost?

A $170 B $1425 C $1700 D $1775

14 Which statement describes the work of del credere agents?

A They are not responsible for guaranteeing a delivery.

B They bring together seller and buyer.

C They cannot arrange contracts in their own name.
D They guarantee payment is made to the seller.

15 Which name is given to the buying and selling of products or services using electronic systems
such as the internet?
A ebanking B ecommerce C email D ereader

16 The diagram shows goods on display.

Where is this type of display most likely to be found?

A mail order company B mobile shop (van)

C supermarket D wholesale warehouse
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17 A student wishes to buy a laptop to aid his studies.

Which factor would be the most important for him to consider when deciding which type of credit
to use?
A immediate ownership B length of repayment period
C number of instalments D overall total cost

18 The diagram shows a channel of distribution.

manufacturer

wholesaler

retailer

consumer

Which type of product would be likely to be sold using this channel of distribution?

A bread B clothing C jewellery D ships

19 Which service does a wholesaler provide for retailers?

A credit information about customers B debt collection
C maintenance of goods D wide variety of goods

20 A person wishes to purchase a car that is valued at $1600 cash. He pays a deposit of 5% of the
cash price, plus 10 equal payments of $190.

How much does he pay in total for the car?

A $1600 B $1680 C $1900 D $1980

21 The sequence of documents used for a business transaction between two firms is shown.

statement
enquiry X order delivery note Y
of account

Which documents fit the X and Y boxes to make the sequence complete?

X Y

A credit note invoice

B invoice credit note
C invoice quotation
D quotation invoice
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22 What is not a characteristic of a credit note?

A It is issued when the buyer has been undercharged.

B It is used when a buyer has returned damaged goods.
C It is usually printed in red or pink.
D It will be itemised on the statement of account.

23 A wholesaler buys televisions from a manufacturer for $120 each. The wholesaler sells them to a
retailer for $150 each.

What is the wholesaler’s percentage mark-up?

A 20% B 25% C 30% D 75%

24 A country has a Balance of Payments surplus on its current account.

What does this mean?

A The total value of its exports exceeds the total value of its imports.
B The total value of its imports exceeds the total value of its exports.
C The total value of its invisibles exceeds the total value of its visibles.
D The total value of its visibles exceeds the total value of its invisibles.

25 A company exporting goods may be faced with protectionism.

What does this mean?

A Countries in a trading bloc may not buy the goods.

B It will be compulsory to use a free port.
C Local industries might fail.
D Tariffs and quotas may be placed on the goods.

26 Which trade difficulty is more likely to be faced by an importer of tractors than an importer of
oranges?
A availability of cold storage facilities B differences in safety standards
C fixed exchange rates D speed of delivery

27 BOGOF is a sales promotion that refers to

A buying high quality goods. B getting one product free.

C offering low standard goods. D offering two free products.
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28 Why is communication important in the global market?

A It enables buyers and sellers worldwide to meet face-to-face.

B It lengthens the chain of distribution for goods.

C It reduces transport costs between countries.

D It speeds the marketing of goods and services.

29 The diagram shows examples of envelopes used in the postal service.

Which envelope would be collected by a business from its local post office?

A B

Postage No postage
will be necessary
paid by if posted in
Licensee Business reply folder Singapore
BB Marketing
Licence No 126 Freepost
Lahore
OO Sales Pakistan
Rosehill
Mauritius

GG Supplies Alayna Hussain

PO Box Number 9876 Poste Restante
Male Adelaide Post Office
Maldives Australia

C D

30 What is an advantage of using a mobile phone rather than a landline?

A It is difficult to steal. B It is used only for local calls.

C It may be used anywhere. D It requires a signal to operate.

31 Which service is provided by a port authority?

A collecting revenue for the government B inspecting immigration documents

C maintaining and repairing the docks D supervising bonded warehouses

32 Which development in transportation has had the most impact on reducing costs of moving
goods?

A development of integrated freight transport using standard-sized containers

B express road routes reducing travelling times between cities
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C mass rapid transport systems providing high-capacity movement around cities
D more airports and air routes giving more opportunities to travel abroad

33 What is a function of warehousing?

A to maintain supplies B to manufacture goods
C to provide after-sales service D to standardise goods

34 The picture shows the flow of goods from the manufacturer to the retailer.

manufacturer retailer

warehouse

Which statement describes the role of the warehouse in the picture?

A advertising availability of goods to consumers

B providing protection for raw materials
C selling directly to the public
D storing goods ahead of consumer demand

35 A bonded warehouse is a place where

A customs officials store confiscated and smuggled goods.

B dutiable goods are stored until duty has been paid on them.
C goods are manufactured ready for sale.
D merchants store all their goods awaiting export.

36 A manufacturer makes a suit. The costs are as follows.

materials 30
labour 20
overheads 30

The manufacturer has a mark-up of 50% on all its retail prices.

What is the selling price of the suit?

A $60 B $80 C $120 D $160

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37 What is entrepôt trade?

A arranging trade between two countries B importing duty-free goods only

C re-exporting goods previously imported D selling more cheaply abroad than at home

38 The table shows the international trade figures for a country in one year.

$m

visible exports 500

visible imports 400
invisible exports 350
invisible imports 200

What is the Balance of Payments for this country?

A $150 m B $250 m C $350 m D $1450 m

39 How do member countries benefit from belonging to a trading bloc?

A Financial contributions are paid to administer the trading bloc.

B Goods are adapted to meet the needs of all the members of the trading bloc.
C Higher prices are paid for goods bought from outside the trading bloc.
D Sales to other members of the trading bloc are likely to increase.

40 Which factor is most likely to influence the choice of an advertising medium for many kinds of
goods?

A amount and size of packaging B method of distribution

C number of customers D the brand name
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