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Which of the following best describes the buying and selling of goods and services?

Economics

ScanSolve AI Answer

Answer

B

trade

Step-by-step solution

4 steps

Section A: Multiple Choice Questions

  1. Trade is the buying and selling of goods and services, which provides a channel for producers to exchange their products for money and for consumers to obtain what they need. * The correct option is (b) trade.

  2. The kind of trade carried out within a country is called home trade. * The correct option is (c) home trade.

  3. Wholesale trade is the act of buying goods in large quantities from producers and selling in smaller quantities to retailers. * The correct option is (c) wholesale trade.

  4. The act of buying in small quantities from wholesalers and selling directly to consumers is called retail trade. * The correct option is (c) retail trade.

  5. The trade which takes place between two or more countries is called international trade. * The correct option is (a) international trade.

  6. Aids to trade are all the services and activities that support, simplify, and facilitate buying and selling of goods and services, making trade easier and more efficient. * The correct option is (d) aids to trade.

  7. Banking provides financial services to traders and businesses. * The correct option is (b) banking.

  8. Insurance provides protection against risks and losses. * The correct option is (d) insurance.

  9. The government agencies that regulate imports and exports are customs. * The correct option is (a) customs.

  10. A system, structure or arrangement that brings buyers and sellers of goods and services together for the purpose of exchange is called a market. * The correct option is (b) market.

  11. The act of market where raw materials and agricultural produce are bought and sold is called commodity market. * The correct option is (b) commodity market.

  12. A trader bought a bag of rice N20,000 and sold it for N23,000. Calculate the profit and profit percentage (%).

  1. Calculate the profit.

    $$
\text{Profit} = \text{Selling Price} - \text{Cost Price}
$$
$$
\text{Profit} = \text{N}23,000 - \text{N}20,000 = \text{N}3,000
$$

  2. Calculate the profit percentage.

    $$
\text{Profit Percentage} = \frac{\text{Profit}}{\text{Cost Price}} \times 100\%
$$
$$
\text{Profit Percentage} = \frac{\text{N}3,000}{\text{N}20,000} \times 100\%
$$
$$
\text{Profit Percentage} = \frac{3}{20} \times 100\% = 0.15 \times 100\% = 15\%
$$
The profit is N3,000 and the profit percentage is 15%.
*   The correct option is **(a) P3,000, %15**.

    25. A radio was bought for N8,000 but sold for N7,000. Calculate the loss and loss %.

  3. Calculate the loss.

    $$
\text{Loss} = \text{Cost Price} - \text{Selling Price}
$$
$$
\text{Loss} = \text{N}8,000 - \text{N}7,000 = \text{N}1,000
$$

  4. Calculate the loss percentage.

    $$
\text{Loss Percentage} = \frac{\text{Loss}}{\text{Cost Price}} \times 100\%
$$
$$
\text{Loss Percentage} = \frac{\text{N}1,000}{\text{N}8,000} \times 100\%
$$
$$
\text{Loss Percentage} = \frac{1}{8} \times 100\% = 0.125 \times 100\% = 12.5\%
$$
The loss is N1,000 and the loss percentage is 12.5%.
*   The correct option is **(d) L1,000 %12.5**.

    26. The price at which goods are sold is called selling price. * The correct option is (b) selling price.

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