NAME: ……………………………………..

TEACHER: ………………………………….

CLASS:……………………………………..

YEAR 9 COMMERCE 2020 HALF YEARLY EXAMINATION

Time allowed – 50 min
Weighting: 60 % Half Yearly Report

Directions to Candidates

Part A (20 Marks) Multiple Choice

Record your answers on the separate answer sheet provided.

Part B (40 Marks) Short Answers

Record your answers in the spaces provided on the booklet.

Question Maximum Mark Marks

Part A MC 20
Part B S/A 40

TOTAL 60

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MULTIPLE CHOICE - ANSWER SHEET

Place an X for the most correct answer

A B C D

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Part A - Multiple Choice Questions (20 Marks)
Choose the most correct answer on the Answer Sheet provided.

1. Our basic needs include:

a. Food and education

b. Shelter water and food
c. Water, food, clothing and shelter
d. Shelter, Food, clothing, water and transport

2. Which of the following are durable goods;

a. Televisions, fridges, computers and tissues

b. Cars, furniture, refrigerators, food and toasters
c. Toasters, TVs, furniture, milk, computers and printers
d. Refrigerators, toasters, televisions, computers, printers and cars

3. Sanjib received his first paycheck of $1000. He had to decide whether to purchase a
new microwave or put the money towards buying a new boat. After much thought he
decided to put his money towards purchasing a new boat. The opportunity cost of
doing this was:

a. Saving his money

b. Not purchasing a boat
c. Not purchasing a new microwave
d. The economy as spending is reduced

4. To satisfy our needs and wants, producers use resources to manufacture the goods and
services that we desire. The four types of resources are:

a. Labour, Land Water and farming

b. Water, agriculture, mines and capital
c. Land, labour, soils and fishing
d. Enterprise, land, labor and capital

5. The amount of money that households have available for spending and saving after
income taxes have been accounted for is known as;

a. Net income
b. Gross income
c. Taxable income
d. Disposable income

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6. The “per unit pricing code” was introduced to allow consumers to engage in
comparison shopping of products to give consumers best value for money. This was
introduced by?

a. The Fair Trading Act of 1987-NSW

b. The Competition and Consumer Act 2010
c. The Commonwealth Anti Competition Act of 2001
d. The Australian Legislative Purchasing Act of 2011

7. Which of the following are key features of generic products?

a. They lack a brand name, are cheap and have acceptable quality
b. They have no brand name but are highly priced as unique products
c. They are high ends goods and usually durable, and command a high price
d. They are goods that are sold through discount stores such as the Reject shop

8. Target and Big W would best be known and what type of store?

a. Specialty Stores
b. Discount Variety Stores
c. Department stores
d. Online Retail Stores

9. Consumer protection legislation makes false and misleading advertising illegal, but
there are still several methods used by retailers to mislead consumers which include;

a. Fine print, ingredients used in the production process and before and after
advertisements
b. Test and surveys, country of origin and packaging and nutritional information
about the product
c. Country of origin, fine print, packaging and special offers and discounts relating
to the product
d. Packaging, fine print, country of origin, tests and surveys and before and
after advertisements

10. Which term best describes the role of an ombudsman”

a. A Swedish word for agent who is tasked with reporting on complaints

b. A Greek word for reporter who reports on the quality of goods and services
c. A Latin word for investigator who reports on deceptive business behavior
d. An English word inspector who investigates misleading advertising by firms

11. Jodie recently returned a good to a department store seeking a refund due to damage
of the good but was refused. The store claimed she damaged the good, but this as not
the case. As part of the consumer redress process Jodie’s next two steps should be to
seek assistance from:

a. NSW Fair Trading followed by the NSW Civil and Administrative Tribunal
b. NSW Fair Trading and the Australian Competition and Consumer Commission
c. NSW Fair Trading and the Australia securities and Investment Commission
d. NSW Fair Trading followed By the NSW Department of Consumer Protection

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12. Bill who is in debt and unable to pay his Debt to Jason may require doing so through
these legal processes:

a. Garnished wages and writ of execution

b. Asking the bank for an extended term of the loan
c. Declaring bankruptcy and not having to pay Jason
d. Lodging a court order asking a judge to have an extended loan form Jason

13. Superannuation is best described as:

a. An investment scheme for workers

b. A savings scheme for share investors
c. A compulsory savings scheme for retirement
d. A compulsory savings scheme for first home buyers

14. What is your return from a savings account?

a. Wage
b. Interest
c. Royalty
d. Commission

15. Jacky bought Qantas shares at $5.50 per share 12 months ago. Six months ago,
Qantas announced a huge profit and all shareholders received a share of the profits
with Jacky receiving 3% on his investment. Today, Jacky sold his shares for $6.10 per
share. Jacky’s return is what?

a. Profit and investment

b. Interest and capital gain
c. Dividend and capital return
d. Dividend and capital gain

16. When discussing investment what is a stock?

a. Cryptocurrency
b. A regular payment
c. A type of investment
d. A partial ownership of a company

17. A recommended investment strategy is not to place all your eggs in one basket, ie
spreading the risk. This investment strategy is known as;

a. Diversification
b. Denomination investment
c. Blue Chip investment strategy
d. Formidable investment strategy

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18. What best describes a situation where credit is provided by retailers so that you can
purchase goods from a retailer and pay the account at a later date within a set period
of time.

a. Layby
b. Afterpay
c. Book-Up
d. Store credit

19. Woolworths Rewards and Coles Fly-Bys are examples of what?

a. Coupons
b. Credit Cards
c. Loyalty Reward Programs
d. Incentive purchasing programs

20. Barter is best referred to as the:

a. Exchange of goods and services

b. Purchasing goods on services on credit
c. Placing a deposit on goods and services and paying for them later
d. Purchasing of goods and services on a 55 days interest free by credit card

End of Section 1

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Part B Short Answers (40 marks)
Question 21 (10 Marks) Marks
Refer to the following sample cheque to answer the questions at (a)

a) Identify the: 3

Drawee
Payee
Drawer

b) Distinguish between a credit card and a debit card. 2

___________________________________________________________________________

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c) Describe two advantages of buying a good on “lay-by”. 2

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c) How does social media affect consumer and financial decisions? 3

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Question 22 (10 Marks) Marks 10

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Val invested $38,000 in Telstra shares through the ASX for which he bought at $5;50 per
share in January 2019. In March 2019 Telstra paid him a dividend of $950.00. He sold them
in February 2020 for $3;50 per share.

a) Identify what the ASX stands for. 1

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b) Identify an ASX stock and justify why its worth investing in it. 2

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c) Use the information above to calculate the following: Show all working out. 4

Rate of return in February 2019

Total capital loss by February 2020

d) Use and example to describe the relationship between risk and return. 3

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Question 23 (10 Marks) Marks

a) Describe the rile of the ACCC (Australian Competition and Consumer Commission). 2

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b) Outline the four basic rights of consumers. 4

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b) Identify and describe two types of scams used by advertises 4

a.________________________________________________________________________

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b.________________________________________________________________________

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 Question 24 (10 Marks) Marks

a) Define the term ‘ethical consumerism’ 1

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b) Describe THREE factors which differentiate products 3

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c) Discuss the legal, ethical and environmental considerations in promoting products 6

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END OF EXAM

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