JAMB 2022 Economics · Question 32

The middlemen is responsible for

Options

  1. A.providing research facilities
  2. B.purchasing raw materials
  3. C.designing the product
  4. D.breaking the bulk

Answer: D. breaking the bulk

Explanation written with AI and checked against the answer key

Analyze the question The question asks about the role of middlemen in the chain of distribution, which is a topic in Economics (Production and Distribution of Goods).

Explain the concept Middlemen are intermediaries, such as wholesalers and retailers, who stand between producers and consumers. Their main functions include:

  • Breaking the bulk: buying goods in large quantities from producers and selling them in smaller units to retailers or consumers
  • Storing and warehousing goods
  • Transporting goods to different markets
  • Granting credit to retailers and consumers
  • Providing market information to producers
  • Bearing risk, such as price changes and spoilage

Step-by-step solution

  • A. Providing research facilities: This is done by research institutions or the firm's own R&D department, not middlemen.
  • B. Purchasing raw materials: This is a function of the manufacturer, who needs inputs for production. Middlemen deal in finished goods.
  • C. Designing the product: This is handled by the producer or manufacturer.
  • D. Breaking the bulk: This is a classic function of wholesalers and retailers. A producer sells cartons or truckloads, and the middleman divides these into smaller quantities that consumers can afford and use. This matches the role of a middleman.

Answer The correct option is D. breaking the bulk.

Exam tip When you see "middlemen" in JAMB Economics, think "distribution," not "production." The keywords to remember are breaking bulk, storage, transport, credit, and risk-bearing. Any option about making, designing, or researching the product is a producer's job, so you can eliminate it.

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