SECTION A

(i)       A wholesaler who operates on a very large scale business and supplies goods to retailers in all parts of the country is known as:

1. nationwide wholesaler
2. specialized wholesalers
3.  general wholesaler
4. regional wholesalers

(ii)      Which of the following presents a disadvantage of barter system?

1.  Double coincidence of wants
2.  Divisibility
3.  Standard of deferred payments
4. Indivisibility

(iii)    An official document used to correct undercharge of an invoice is called

1. debit note 
2. credit note
3. consignment note   
4. delivery note

(iv)    Which of the following group presents a broad classification of occupations ?

1. Trade and production
2.  Industrial, commercial and tertiary.
3.  Extractive, manufacturing and constructive industries 
4. Trade, aids to trade and industrial.

(v) Prices below equilibrium price reflect:

1.  excess demand
2.  excess supply 
3.  decrease in demand 
4.  increase in supply.

(vi)     An agent who sells goods of his principal in his own name is called

1.  commission agent
2.  broker
3.  factor
4. del-credere agent

(vii)   Which of the following presents the main feature of multiple shops?

1.  Many shops selling different kind of goods owned by on person
2.  Many shops selling the same kind of goods and owned by one person
3.  Many shops under one building selling different kind of goods
4. Many shops selling similar products from different producers

(viii) Examples of free goods are

1.  Tanzania Broadcasting, ITV and Star TV
2.  refrigerator, tractors and tailoring machine 
3.  roads, public hospitals and public schools 
4. rainfall, sunshine and air.

(xi) Which ofthe following is not included in commerce flow chart?

1. Insurance
2. Warehousing 
3. Production
4. Transportation.

(x) What is the correct formula used to calculate working capital of the business?

1.  Opening stock plus closing stock divide by two.
2.  Current assets less current liabilities
3.  Current assets less current liabilities plus fixed assets
4. Total assets less current assets.

2.    Match items in List A with the responses in List B by writing letter ofthe correct response below the number ofthe corresponding item in the table provided.

SECTION B

4.          Define the following terms with examples

(a)      Durable

(b)     Consumer goods

(c)      Indirect production .

(d)     Extractive industries

(e)      Departmental stores 

5.          Briefly explain six qualities of a good retailer

SECTION C

6.  (a) Describe shift in supply curve.

(b)      Draw a graph to show the inwards and outwards shiftin supply curve.

(c)      Describe five factors which cause a decrease in supply curve.

7. Explain six types of costs of production.

SECTION A

1.         For each of the following items (i) - (x), choose the correct answer.

(i) Warehouses which belong to manufacturers, wholesalers or individuals are categorized as:

1.  bonded warehouses
2.  specialized warehouses
3.  private warehouses 
4.  public warehouses

(ii)The appropriate channel to distribute perishable goods to final consumers is from:

1.  producers, wholesalers, retailers to the final consumers
2.  producers, wholesalers to final consumers
3.  producers, large scale retailers to final consumers
4.  producers, small scale retailers to final consumers.

(iii)    Which of the following is considered as disadvantage of division of labour?

1. Unemployment
2. High degree of choice
3.  Employment opportunity 
4.  Efficiency

(iv)    The exchange of goods and services is referred as:

1.  Aids to trade
2.   Trade
3.   Barter trade 
4.  Commerce

(v)      Demand curve normally slopes from

1.  left to right upwards 
2.  right to left downwards 
3.  right to left upwards
4.  left to right downwards

(vi)    Which of the following is an example of retailers who do not have permanent premises?

1.  Single shop
2.  Tied shop 
3.  Mobile shop
4.  Multiple shops.

(vii)  Which of the following is a reward for capital as a factor of production? 

1.  Wage. 
2.  Interest
3. Profit 
4.  Rent

(viii)If the price elasticity of demand is greater than 1, the demand is said to be.

1.     elastic
2.    perfectly elastic
3.  inelastic 
4.  unitary

(ix)    Which of the following is a good example of perishable goods?

1.      Processed coffee
2.      Wheat flour
3.      Natural flowers
4.      Processed vegetables

(x)      If the average stock is shs. 120, 000 and cost of sales is shs. 480,000, the stock turn rate will be:

1.  0.25times 
2.  Shs 600,000
3. Shs 360, 000
4.  4 times

2.   Match the items in List A with the responses in List B by writing the letter of the correct response in the table provided.

3.      Complete the following sentences by filling in the blanks with correct word (s):

(i)        An aid to trade whose major aim is to compensate the insured who suffered losses out of the stated risk is called......

(ii)      Industries which are involved in changing the form of raw materials into finished goods are classified as. .........

(iii)    The quantity of goods that producers are willing and able to offer for sale at a given price in a given period of time is known as ...........

(iv)     In hire purchase agreement, whenever the buyer failed to pay only the last instalment the property bought will remain in the hands of the. .........

(v)      are the costs of production which change as the output changes..............

(vi)     Trade which involves exchange of goods by goods commercially is termed as............

(vii)   Wholesalers who handle a particular type of goods but offer a greater variety within their particular field are known as. .........

(viii) The responsiveness of demand for a product to a change in price represents. .........

(ix)    Human needs which consist of food, shelter and clothes are called....................

(x)      ....................are retailers who sit next to bus stands, market place, public/private halls or around the schools offering small items like sweets, fresh fruits pens, drinks, etc, to customers.

SECTION B

4.     Briefly describe the following terms:

(a)     Foreign trade

(b)     Supermarkets

(c)De-credere agents

(d) Direct services

(e)Departmental stores

5.       (a)   What is meant by the term retail trade?

(b)      Briefly explain five functions of retailers

SECTION C

6.    (a)   Briefly describe four types of demand.

      (b)      Explain four factors that cause change in demand for a certain product.

7.   (a)       List five main branches of aids to trade.

     (b)      Explain the importance of commerce in our daily life. Give five points.