The role of commerce in the process of production is to make:

  1. direct services reach ultimate consumers
  2.  distribution of goods and services to retailers
  3.  distribution of goods and services to wholesalers
  4. goods and services produced to reach ultimate consumers
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 When there is an increase in supply, the supply curve always shifts.

  1.  downwards
  2. from left to right
  3.  from right to left 
  4. upwards
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(iii)      Goods produced create utility when they:

  1. are stored in a warehouse
  2.    reach the final consumers
  3.   reach the manufacturers shop
  4. reach the retail shop
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(iv)      ... ... ... includes all the activities necessary in bringing goods and services into the market:

  1.   market event
  2.  marketing
  3. market research 
  4. market price
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(v)       One of the following is the quality of the retailer:

  1.   being honest
  2.  making payments
  3.  producing goods
  4. transporting goods
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(vi)      A profit percentage which is calculated on sales is called:

  1. gross profit
  2. margin
  3. mark up
  4. net profit
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(vii)    The art of transmitting information and ideas by word of mouth, writing or by other means is called:

  1.  advertising
  2.  communication
  3. insurance 
  4. transport
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(viii)   Portability can be defined as ability to:

  1.   carry things easily
  2.  keep things
  3.   pull things easily
  4.  store things
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(ix)      A document which contains a list of goods offered for sale by traders is called:

  1.  an invoice
  2.  an order
  3.  catalogue 
  4.  price tag
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(x)       Steps through which goods reach the consumers are termed as:

  1.  chain of distribution 
  2. chain of production
  3.  means of carriage
  4.  means of production
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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.


(i) A document issued when goods have been bought or sold on cash basis

(ii) Applies to any activity carried out with an intention of making profit

(iii) Elasticity that is equal to one Is a price paid for use of land as a factor of production and other immovable assets

(iv) Is payment made to a person who does work on behalf of another

(v) Is the technique used to transfer risks arising from price fluctuation

(vi) Is the technique used to transfer risks arising from price fluctuation

(vii)Is a person who represents buyers and sellers in negotiating a purchases or sale without physical handling of goods

(viii) Merchant agent who sells goods in auction mart

(ix) Physical counting of items of stocks at given period of time.

(x) The movement of labour from one occupation to another

  1. Auctioneers
  2. A receipt
  3. Broker
  4. Business
  5. Commission
  6. Hedging
  7. Mobility of labour
  8. Rent
  9. Sales
  10. Stock taking
  11. Stock turnover
  12. Supply schedule
  13. Tertiary production
  14. Unitary elasticity
  15. Unitary demand

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

(a) A shop which sells a particular specialized line of goods is called . . . . . . .

(b) Costs which don't vary with the level of output are referred to as . . . . . . .

(c) The change of the form of raw materials into useful products is called . . . . . . .

(d) The cleaning, dusting and sorting out spoilt goods in a store is termed as . . . . . . .

(e) The demand curve which slopes upwards from left to right is known as . . . . . . .

(f) The difference between selling price and cost price is referred to as . . . . . . .

(g) The exchange of goods for goods is . . . . . . .

(h) The product which remains the property of the seller till the last instalment has been paid is referred to as . . . . . . .

(i) The services given by teacher and medical doctor are good examples of . . . . . . .

The type of retail trade by which orders are placed, sent and goods are received through the postal services is . . . . . . .

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

(a) Joint demand

(b) Cash discount

(c) Peddler

(d) Private warehouse

(e) Capital goods

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5. (a) Define the term "Specialization".

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(b) Briefly explain five advantages of specialization.

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6. (a) Define the term "Order point".

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(b) Kinyamwezi Company ordered "Vitenge" from Urafiki Textile Mills. It normally takes the company 10 days to receive a consignment from the date of sending an order. The company's daily sales volume is 20 pairs of vitenge and maintains a minimum stock of 60 pairs of vitenge; calculate the company's order point.

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7. Briefly explain five problems facing home trade in Tanzania.

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