Hindrances of Commerce and Aids to Trade
Tests knowledge of different types of hindrances in commerce (person, place, time, knowledge, threat, finance) and how they are resolved through trade, transport, warehousing, banking, insurance, and advertising
Questions
Which of the following factors causes the barter system to be inefficient?
- The cost associated with information search is too low.
- Its cost of transaction is too low.
- It requires a double coincidence of wants.
- It requires high liquidity.
If a farm has an abundance of corn but no pigs, and a neighboring farm has no corn, but too many pigs, the two farms might come to an agreement that would benefit both through bartering.
- True
- False
Hindrance of _____ refers to the problem of distribution of goods at distant places without loss.
- skill
- person
- time
- place
____ hindrance is solved by warehousing or storage.
- Hindrance of person
- Hindrance of time
- Hindrance of ability
- Hindrance of place
_______ is the sum total of all those processes which are engaged in the removal of hindrance of person, place or time
- Commerce
- Industry
- Business
- Retail
The hindrance of ____ is removed by trade thereby making goods available to the consumers from the producers.
- place
- persons
- time
- knowledge
______ eliminates the barriers of persons for the smooth flow of goods from producer to consumer.
- Advertising
- Warehousing
- Trade
- Insurance
_______ removes the hindrance of finance and facilitate the exchange.
- Banking
- Trade
- Insurance
- Transport
Advertisement and salesmanship remove the hindrance of _____.
- finance
- knowledge
- sales
- time
Insurance removes the hindrance of __________.
- time
- finance
- threat
- person