Bismillahir Rahmanir Rahiim

MUDIO ISLAMIC EXAMINATION BOARD (MIEB)

FORM ONE TEST 3 SECOND TERM - 2015
COMMERCE
TIME: 2:30 HOURS INDEX NO

Instructions :
 This paper consist of section A, B, and C
 Answer all questions in both sections
 Write your examination number in every page of your answer sheet

SECTION A (30 MARKS)

1. Choose the correct answer from the given alternatives
(i) Commerce is ______
A) Creating goods and services
B) Making direct services
C) Exchange and distribution of services only
D) Exchange of goods and services from producers to final consumers

(ii) Barter trade is a trade conducted years ago before introduction of money. It
involved __________
A) Exchange of goods for money
B) Exchange of money for services
C) Exchange of goods by goods or services for services
D) Exchange of goods and services intern of money

(iii) _____is dealing with buying and selling of goods and services.
A) Trade C) Advertising
B) Commerce D) Selling

(iv) Doing a work repeatedly can cause _______

A) Fatigue or cumbersome
B) Commerce to go smoothly
C) Goods to be distributed over the world

(v) The table that shows the quantity of goods bought at a given price in a given
period of time is known as ________
A) Demand curve C) Supply schedule
B) Demand schedule D) Supply curve

(vi) Variable cost is that changes with _________

A) Fixed cost C) Machinery
B) Change in the production D) Time
 (vii) Wholesaler obtain goods from ______
A) Consumers
B) Market
C) Retailers
D) Producers or manufacturers

(viii) The type of goods which are used to produce other goods is called _____
A) Consumer goods C) Industrial goods
B) Durable goods D) Perishable goods

(ix) The trade which involves exchange of goods and services among different
countries is called _______
A) Barter trade C) Internal trade
B) Foreign trade D) Domestic trade

(x) One among the following is a character of Retail trade____

A) Buying from wholesalers and selling them to final consumers
B) Buying from producers and selling them to final consumers
C) Buying from retailers and selling them to final consumers
D) Selling direct to wholesalers

2. Choose the correct answer from or term from list B that matches with explanations in list
A then write the letter against the number of relevant explanations.

List A List B
(i) _____Is the creation of goods and services for A. Extractive industries and
utility tertiary
(ii) ______Is the ability of goods and services to B. Production
satisfy human wants
(iii) _____Is a reward obtained for using capital C. Indirect production
(iv) _____Is the kind of goods which stay short in D. Direct production
use before being waste.
(v) _____Is the desire, willingness and ability to E. Increase in the production
buy a certain quantities of commodities in a
given price
(vi) _____Is where a person makes a chair for his F. Consumers
own use
(vii) _____Is a chief advantage of division of labour G. Perishable goods
(viii) _____Is the final user of goods and services H. Durable goods
(ix) ____Are activities of producing goods for sale I. Utility
(x) _____Dealing with extraction of natural J. Ability
resources and altering them to the state of
consumption
K. Demand
L. Demand curve
M. Interest
 N. Profit
Answers
List A i ii iii iv v vi vii viii ix x
List B

3. Complete the following sentences by filling in the blank space with the correct word(s) or
term(s)
(i) A branch of trade divided into retail and wholesale trade is called ___________
(ii) Is a person who starts a business, pay other factors of production and takes the risks
of the business ________________________
(iii) Is a process where by workers are arranged in the job they can do the best ________
(iv) _________________is the study on how available scarce resources can be used to
satisfy human wants.
(v) Facilitate trade to run smoothly ________________
(vi) Cost which do not vary with the level of out put __________
(vii) Manufacturing, extractive and constructive are branches of ______________
(viii) A trade involving buying goods from other countries is __________________
(ix) Is a problem of barter trade in which people were moving long distance with goods
on their heads _____________________
(x) _______________is the aid to trade which involves making goods to be known to
the customers or consumers.

SECTION B (30 marks)

4. Write the meanings of the following

a) Basic needs
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
b) Communication
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
c) Commerce
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
d) Trade
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
e) Capital
_____________________________________________________________________
 _____________________________________________________________________
_____________________________________________________________________

5.
a) Define the term specialization
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

b) State any three (3) advantages and two disadvantages of division of labour
Advantages
i. ________________________________________________________
ii. ________________________________________________________
iii. ________________________________________________________

Disadvantages
iv. __________________________________________________________
v. __________________________________________________________

SECTION C (40 marks)

6. All commercial activities may be shown inform of chart, as commercial student prove
this statement by drawing commerce flow chart.

7.
a) Define the term total cost
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

b) Complete the following table by filling the gaps

Quantity Fixed cost Variable cost Total cost Average fixed Average variable
(Qty) (FC) (VC) (TC) cost cost
(AFC) (AVC)
0 500 __________ 500 ____________ ____________
1 500 __________ 1300 ____________ ____________
2 500 __________ 1500 ____________ ____________
3 500 __________ 1700 ____________ ____________

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