FORM TWO COMMERCE NECTA 2014

The process of selling goods and services to other countries is called:

  1.  Horne trade
  2.  International trade
  3.  Retail trade
  4.  Export trade
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(ii)      The movement along a demand curve is caused by:

  1.  change in price of a commodity
  2. change in consumers income
  3.  change in quantity demanded 
  4.  change in consumers taste
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(iii)    Which ofthe following is the best feature ofthe multiple shops?

  1. Providing self services to customers.
  2. Stocking variety goods from different producers.
  3.  Stocking similar goods and often similar in appearance.
  4. Stocking similar goods under one roof and one management.
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(iv)    The main branches of production are:

  1. Commerce, industry and trade
  2. Commerce, industry and public service
  3. Commerce, industry and direct services
  4. Commerce, industry and personal services
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(v)      The shops which sell products of one manufacturer only are called:

  1. Supermarket shops
  2.  Tied shops
  3.  Single shops
  4.  Mobile shops
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(vi)    Which of the following is a reward for land as a factor of production?

  1. Interest
  2.  Profit
  3. wage
  4. Rent
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(vii)  A warehouse where imported goods are kept waiting for customs clearance is called

  1.  Specialized warehouse
  2. Bonded warehouse
  3. Public warehouse
  4. Private warehouse
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(viii)Which of the following service is normally rendered by wholesalers to the consumers?

  1. Providing capital.
  2.  Providing transport. 
  3. Providing advice.
  4.  Providing variety of goods.
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(ix)    An art of making goods and services known to the public is known as:

  1.  marketing
  2. sales promotion
  3. advertising
  4.  communication
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(x)      Any price above equilibrium price for a given commodity leads to:

  1. excess supply
  2. decrease in supply
  3. decrease in demand
  4.  excess demand
Choose Answer :


2. Choose the correct term from List B which matches with the explanation in List A, and then write the letter below the number of the relevant explanation in the Table provided.

LIST A LIST B

(i) A document authorizing the removal of goods from a warehouse.

(ii) A person who represents buyers and sellers in negotiating a purchase or sale without physical handling of goods.

(iii) A product remains the property of the seller till all installments have been paid

(iv) A type of demand when the product is used for different purposes.

(v) An institution which is involved in financial transactions.

(vi) Bread and butter, sugar and tea illustrate the type of interrelated demand.

(vii) Cost of goods sold divided by the average stock.

(viii) Shops which are scattered in different parts of a country selling similar goods.

(ix) The action through which aretailer discovers information about the needs of the customers

(x) The person who provides capital and bears risks of the business

  1. Advertising
  2. Bank
  3. Broker
  4. Competitive demand
  5. Composite demand
  6. Development bank
  7. Entrepreneur
  8. Hire purchases
  9. Joint demand
  10. Market research
  11. Multiple shops
  12. Rate of stock turn
  13. Stock turnover
  14. Warehouse shops
  15. Warehouse warrant
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3. Complete each of the following statements by filling in the blanks with the correct word(s)

(i) A.type of large scale retail trade having a single shop is . . . . . . . . . . . .

(ii) The allowance made by the seller in order to encourage buyers to buy more goods is called . . . . . . . . . . . .

(iii) The amount of the commodity that firms are willing and able to sell in the market at a specific level of price and period of time is known as . . . . . . . . . . . .

(iv) The factor of production which includes machinery, tools, buildings and raw materials for production is called . . . . . . . . . . . .

(v) The list of various quantities of commodities bought at different levels of prices at a specific period of time is termed as . . . . . . . . . . . .

(vi) The movement of goods and services from a production are to the consumption area is termed as . . . . . . . . . . . .

(vii) The process of dividing work according to skills of the workers is called . . . . . . . . . . . .

(viii) The reward of labour is . . . . . . . . . . . .

(ix) Trade that deals with selling of goods and services outside the country is known as . . . . . . . . . . . .

(x) Traders who set up their business along side of the streets and larger cities are termed as . . . . . . . . . . . . .


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SECTION B

4. Write short notes on each of the following terms:

(a) Direct production

(b) Communication

(c) A catalogue

(d) Fixed cost

(e) Mobile shop

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5. (a) Who is a wholesaler?

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(b) Briefly explain five functions of wholesaler.

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SECTION C

6. Study the given Table and answer the questions that follow:

Price (Tshs)

200

400

600

800

1000

Qty. demanded (kgs)

1000

800

600

400

200

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(a) Calculate the price elasticity of demand if the price changes from Tshs. 400 to Tshs. 600.

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(b) Comment on your answer in (a) above.

7. Briefly explain five points on the importance of studying Commerce.

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