CIPS A6 Exam Practice Test Instant Access

Question 1

Which of the following best describes the term 'monetary policy'?

AThe government controlling economic activity by regulating the level of taxation

BThe government controlling economic activity by influencing public service provision

CThe government controlling economic activity by influencing the rate of interest

DThe government controlling economic activity by regulating monopolies.

Answer : B

Question 2

A PEST analysis is conducted on which of the following environments of a company? (2 marks)

AExternal

BInternal

CHistorical

DPolitical

Answer : A

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

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

AInflation

BUnemployment

CTaxation

DWages

Answer : C

Question 5

Which of the following best describes the pricing policy known as 'penetation' pricing? (2 marks)

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 in the short-term

Answer : C

Question 6

Which of the following headings would appear in the current account of a country's alance of payments? (2 marks)

ATransactions in goods and services

BTransactions in external assets and liabilities

CTransactions in large sums of money

DTransactions in stocks and shares

Answer : A

Question 7

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

ACyclical

BFrictional

CMoving

DStructural

Answer : A

CIPS A6 Analyzing the Supply Market Exam Practice Test