JAMB 2019 Economics · Question 34

A retailer is distinguished by the nature of its sales, which is in___________

Options

  1. A.Bulk
  2. B.Large
  3. C.Units
  4. D.Chain

Answer: C. Units

Explanation written with AI and checked against the answer key

Analyze the question: The question asks what sets a retailer apart from other middlemen in the chain of distribution. The answer lies in the quantity in which the retailer sells.

Explain the concept: In the chain of distribution, goods move from the producer to the consumer through middlemen:

  • Producer/Manufacturer → Wholesaler → Retailer → Consumer

The key difference is the quantity sold:

  • Wholesalers buy and sell in bulk (large quantities) to retailers.
  • Retailers buy from wholesalers in bulk, but sell in small quantities, or individual units, to the final consumer.

Step-by-step solution:

  1. Option A, Bulk: This describes a wholesaler, not a retailer. ❌
  2. Option B, Large: This is also the wholesaler's style of selling (large quantities). ❌
  3. Option C, Units: A retailer sells in small quantities or single units, such as one bar of soap, one tin of milk, or one loaf of bread, to the final consumer. ✅
  4. Option D, Chain: This refers to the channel of distribution, or to chain stores. It is not the nature of a retailer's sales. ❌

Answer: C. Units

Exam tip: Remember it this way: Wholesaler = Whole lot (bulk); Retailer = Retail by piece (units). If a question asks about selling to the final consumer in small quantities, think retailer. Think of the provision store or kiosk down your street, where you buy one sachet of milk at a time.

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