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Question

A manufacturer sends out car toys to various toy retail stores. This is an example of


  1. Rationing

  2. Production

  3. Consumption

  4. Distribution


Solution

The correct option is D

Distribution


A seller or a distributor procures the goods from the manufacturer and distributes it to the customers. This act of sending out goods to the distributor or the retail stores is known as distribution. Here, the manufacturer sends the goods (car toys) to the retail stores. Hence this is an example of distribution.

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