CIPS A6 Exam Practice Test Instant Access

Question 1

'Fiscal' poicy is government policy controlling which of the following? (2 marks)

AInflation

BUnemployment

CTaxation

DWages

Answer : C

Question 2

Which of the following best describes 'fiscal policy'?

AThe control of inflation

BThe control of unemployment

CThe control of taxation

DThe control of wages.

Answer : D

Question 3

Which of the following best describes the term 'business cycle'?

AThe time that elapses between a buyer placing an order and the seller delivering the goods

BThe continuum of economic activity from extraction of raw materials to the sale of finished goods

CThe time that elapses between a user department recognizing the need for an item and purchasing placing the order

DThe need for all businesses in a free market economy to make a profit which allows the company to expand and grow.

Answer : C

Question 4

Which of the following statements best describes the economic term 'inflation'?

AToo much money chasing too many commodities

BToo few customers chasing too many commodities

CToo much money chasing too few commodities

DToo many customers chasing too many commodities.

Answer : D

Question 5

Which of the following best describes 'balance of payments'?

AThe record of a country's monetary import and export transactions during a year

BThe record of exchange rate movements during a year

CThe record of all payments made by a government department during a year

DThe record of all revenue from taxes received by a government during a year.

Answer : B

Question 6

The acronym P.E.S.T. used in analyzing the environment stands for which of the following?

APolitical-Environmental-Social-Technical

BPopulation-Education-Sport-Taxation

CPolicy-Expansion-Security-Training

Dpolitical-Economic-Social-Technological.

Answer : B

Question 7

Which of the following best describes the term 'inflation'?

AToo little money chasing too many goods

BToo much money chasing too few goods

CToo little money chasing too few goods

DToo much money chasing too many goods.

Answer : A

CIPS A6 Analyzing the Supply Market Exam Practice Test