WASSCE Economics · Paper 1 style

Distributive trade

One sample question with the full working. 3 more in the app, with instant feedback and repair sessions for the traps below.

Breaking bulk is a function of the

Awholesaler
Bconsumer
Cmanufacturer only
Dcentral bank

Show the answer and working

Answer: A

Buys large quantities and sells in smaller lots to retailers.

Trap B Confuses channels of distribution: Producer → wholesaler → retailer → consumer. Wholesalers buy in bulk, break bulk, store, finance retailers and bear risk. Retailers sell in small quantities to final consumers.

Trap C Confuses channels of distribution: Producer → wholesaler → retailer → consumer. Wholesalers buy in bulk, break bulk, store, finance retailers and bear risk. Retailers sell in small quantities to final consumers.

Trap D Confuses central and commercial bank functions: Central bank: issues currency, banker to government and banks, lender of last resort, monetary policy. Commercial banks: deposits, loans, payments for the public.

Traps in Distributive trade

Confuses channels of distribution
Producer → wholesaler → retailer → consumer. Wholesalers buy in bulk, break bulk, store, finance retailers and bear risk. Retailers sell in small quantities to final consumers.
Confuses central and commercial bank functions
Central bank: issues currency, banker to government and banks, lender of last resort, monetary policy. Commercial banks: deposits, loans, payments for the public.
Over-generalises a rule
Economic laws hold 'other things being equal' and within limits. Be suspicious of options with always/never/all.
Picks a closely related concept
Learn related terms as contrasting pairs with one-line definitions, and identify which one the stem describes.

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