Student Name………………………………………..

PRESIDENT OFFICE
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT
FORM TWO WEEKLY TEST
COMMERCE
Time: 2:30 Hours JULY, 2021
Instructions
1. This paper consists of section A, B and C
2. Answer all questions in All sections
SECTION A (30 marks)
1.For each of the following items (i) –(x) choose the correct answer from among the given alternatives
and write its letter besides the item number
(i) A science student does not know the objective of commerce, as the commerce student
help him to identify the main purpose of commerce is bridging the gap between the;
(a) Wholesaler and consumer (c) Producer and retailer
(b) Retailer and consumer (d) Producer and consumer
(ii) Mwendapole is the business woman who is conducting retailing activities which of the
following is not the quality he possesses as good retailer?
(a) Should be honest
(b) Should be pleasant in dealing with is customer
(c) Should be thieves
(d) Should be a good administrator
(iii) Demand curve always slopes downward from;
(a) Left to right downward (c) Left to right upward
(b) Right to left downward (d) Right to left upward
(iv) The main reason of retailers to buy goods from wholesaler is
(a) They can buy at affordable price and quantity
(b) They are near to them
(c) Producer did not allow retailers to buy goods from them
(d) Wholesalers sells goods on credit to retailer
(v) Which of the following is not good way of increasing sales?
(a) Advertising (c) Low price
(b) Good communication (d) High price
(vi) Computer as the one of the economic goods, which one among the following feature does
it possess;
(a) Are goods produced to produce other goods?
(b) They lack exchange value
(c) They are scarce
(d) They are owned individually
(vii) Musa as the employee of Mtibwa Company, he’s effort used in producing a sugar is
considered as the factor of labour which one of the following is not features of his effort?
(a) The payment of labor is wages (c) Labor is the most mobile factor
(b) Labor differs in efficiency (d) Payment of labor is rent

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(viii) Are the type of costs that do not change with the change in the level of output
(a) Fixed cost
(b) Variable cost
(c) Total cost
(d) Opportunity cost

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(ix)
(x) Which of the following industries deals with natural resource?
(a) Manufacturing (c) Extractive
(b) Constructive (d) Textile
(xi) if a small change in price brings about a large change in the quantity demanded, then the
price elasticity of demand is;
(a) Constant (c) Elastic
(b) Inelastic (d) Unit
i ii iii iv v vi vii viii ix x

2. Match the items in LIST A with the correct response in LIST B by writing the letter of the
corresponding response beside item number
LIST A LIST B
(i) These are traders who do not have a A. Debit note
permanent premise B. Departmental stores
(ii) Is one of the features of super market C. Self-services
(iii) The document sent by the seller to the buyer D. Provide credit
in order to correct an overcharge on the E. Single shops
original invoice F. Itinerant trader
(iv) This is the number of single shops each G. Credit not
restricted to selling only one class of goods H. Multiple shops
under one roof and one management
(v) Shoppers plaza and mlimani city shopping
center are examples of;

List A i ii iii iv v
List B

3 (a) Write TRUE if the statement is correct and FALSE if the statement is not correct
i. Utility is an ability of goods to satisfy human needs……………………
ii. Marginal cost is the costs which do not change with the variation of output…….
iii. Demand curve always slope upward from left to right side…………….
iv. Time saving is one of the advantages of specialization and division of labor ……...
v. Transportation involves the movement of goods and people from one area to another…….
vi. Communication is the transfer of information or ideas from one person to another….
vii. Auxiliary to trade also known as aids to trade………….
viii. Commerce is wider than economics……………...
ix. Barter trade is the exchange of goods and money……………………...
x. Blue band and Tan bond are an example of competitive demand

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(b) Complete the following statements by putting the right word in the space provided
(i) …………………………… is the discount given to induce the traders to pay prompt?
(ii)……………………………this is the revenue which remains after making the deduction of
the expenses of running
(iii)………………………….is the combination of two or more supply curve
(iv) The law of demand states that, the lower the price of the commodity the …………...the
quantity demanded
(v)……………………….is an example of consumer goods

SECTION B (30marks)
4. Write short notes on the following concepts;
(a) Insurance………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
(b) Land……………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
(c) Entrepreneur……………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
(d) Joint demand
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
(e) Containerization
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
5. (a) outline five (5) factors to be considered in the establishment of warehouse
(i) ……………………………………………………………………………………………………
(ii) …………………………………………………………………………………………………….
(iii) ……………………………………………………………………………………………
………...
(iv)……………………………………………………………………………………………………..
(v) ……………………………………………………………………………………………………..
(b) What is the reward of the following factors of production?
(i) Land…………………….
(ii) Labor……………………….
(iii) Capital……………………
(iv) Entrepreneur………………...
SECTION C (40 marks)
6. Explain what as the factors to be considered when choosing means of Transport
7. Explain five (5) drawbacks of barter trade
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