Multiple choice questions
Yvonne Harvey, Contributor

Edwin Allen's Sherene Pinnock taking the girls 400m hurdles open in 57.03 seconds at the National Stadium on March 29. - Ian Allen Photo

HELLO FRIENDS. It's a pleasure to present this week's lesson which consists of a multiple choice test. The questions are taken from right across the syllabus. I hope you will benefit from them and that you will do well.

1. The basic needs of man are:

a) land, money, car
b) food, money, land
c) food, clothing, shelter
d) food, shelter, money

2. The most important principle upon which barter trade depends is known as:

a) insurable interest
b) indemnity principle
c) utmost good faith
d) double coincidence of wants

3. Mary lives in a country in which the state makes all the decisions about economic activities. That country has adopted the:

a) planned economic system
b) mixed economic system
c) free economic system
d) Capitalist economic system

4. The most important role of a business in any community is to:

a) pollute the environment
b) earn foreign exchange
c) provide revenue for the government
d) provide goods and services to satisfy the wants of people

5. Consumers are those individuals who:

a) buy their goods from a consumers cooperative society
b) consume all the goods produced by manufacturers
c) provide goods and services for our satisfaction
d) utilise the goods and services provided to satisfy wants

6. The public sector comprises:

a) a body of public corporations, public companies and municipal undertakings
b) a combination of public companies and public corporations
c) an association of all public companies within the country
d) central and local government organisations and state corporations

7. Which of the following business organisations belong to the private sector?

a) municipal authority
b) nationalised industries
c) public corporations
d) public limited companies

8. In a partnership, an investor is a partner.

In a large company, an investor is a:

a) sole trader
b) manager
c) director
d) shareholder

9. What is the maximum number of share holders a private limited company can have?

a) two
b) five
c) fifty
d) eighty

10. The relationship between the highest level of management down to the various departments is known as:

a) flow
b) rank
c) staff
d) line

11. If X offers Y a book for $5, but Y says that he can only pay $4.50 for it, this is an example of:

a) an offer
b) a counter offer
c) an invitation to treat
d) consideration

12. An item displayed in a store with a price tag is an example of:

a) an offer
b) a counter offer
c) an invitation to treat
d) consideration

13. John buys goods to the value of $150, but is allowed 20% trade discount on the invoice, plus 5% cash discount. He will therefore pay:

a) $112.50
b) $114.00
c) $126.00
d) $142.50

14. If you received less goods than was ordered and paid for, your supplier would send you:

a) a credit note
b) an invoice
c) a debit note
d) a bill of exchange

15. When a cheque is crossed, it means that:

a) something is wrong with it
b) it is cancelled and not good anymore
c) the money cannot be withdrawn immediately, but has to be lodged to an account
d) it can be taken to a bank and the money stated withdrawn at once

16. Which of the following is the most important characteristic of money?

a) acceptability
b) durability
c) limited supply
d) portability

17. The only bank which can claim to be a lender of last resort is the:

a) merchant bank
b) central bank
c) commercial bank
d) trustee savings bank

18. The document that has details of the source of goods, the raw materials from which the goods are made, is called the:

a) shipping note
b) certificate of origin
c) bill of lading
d) bill of exchange

19. Assurance policies specifically refer to:

a) personal life coverage
b) coverage of risks involving cargo transport
c) loss of goods due to hurricane
d) loss of sale of goods

20. A man insured his property for $80,000, but its true value was $100,000. A fire caused $10,000 worth of damage. The insurance will pay out:

a) $10,000
b) $8,000
c) $5,000
d) $6,500

I hope you will get a perfect score. Next week I will provide you with the answers to the questions and give you some tips for doing well in the final examination. See you next week.

* Yvonne Harvey teaches at Glenmuir High School.