CIPS A6 Exam Questions Instant Access - No Installation Required

Question 1

Which of the following best describes the pricing policy known as 'penetration pricing'?

AA price in line with that being charged by competitors

BA high price aimed at a quick recovery of costs

CA low price set to gain a large share of the market

DA temporary price reduction to increase sales or 'ward off ' competition.

Answer : B

Question 2

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 3

Which of the following best describes the economic term 'budget deficit'? (2 marks)

AGovernment revenues exceeding government expenditure

BGovernment expenditure equaling government revenue

CGovernment revenues creating government expenditure

DGovernment expenditure exceeding government revenue

Answer : D

Question 4

Which of the following best describes 'below the line' promotion?

AProviding free gifts to remind potential customers of the seller's organization

BMethods of securing a buyer's loyalty to a seller, which are potentially illegal, for example, bribery

CAdvertising which targets specific types of buyer, for example, advertising in a particular trade magazine

DAdvertising at global sporting events so that advertising in individual countries is not required.

Answer : B

Question 5

Which of the following best defines the term 'Exchange rate'?(2 marks)

AThe amount of business transacted between one country and another during a year

BThe speed with which a company receives payment for goods or services sold

CThe extent of barter transactions in a particular country

DThe value of one country Oscurrency measured against that of another.

Answer : D

Question 6

Which of the following is the most likely consequence of government decreasing interest rates? (2 marks)

APeople spend more

BPeople spend less

CThe economy slows down

DThe cost of borrowing goes up

Answer : A

Question 7

Which of the following describes people leaving one job and moving to another? (2 marks)

AStructural unemployment

BFrictional unemployment

CMigration unemployment

DCyclical unemployment

Answer : D

CIPS Analyzing the Supply Market A6 Exam Questions