CIPS A6 Exam Practice Test Instant Access

Question 1

Which of the following is an important concept in economic theory?

APEST analysis

BProduct life cycle

CProfit maximization

DSampson's concept.

Answer : C

Question 2

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

ACyclical

BFrictional

CMoving

DStructural

Answer : A

Question 3

Which of the following headings would appear in the current account of a country's balance of payments?

ATransactions in goods and services

BTransactions in external assets and liabilities

CTransactions in large sums of money

DTransactions in stocks and shares.

Answer : C

Question 4

Which of the following best defines the term 'monetary policy'? (2 marks)

AThe control of taxation

BThe control over the amount of money in circulation and the cost of borrowing

CThe control of numbers of people unemployed compared to those employed

DThe control of wealth distribution

Answer : B

Question 5

Which of the following best describes the term 'structural unemployment'?

AUnemployment created as demand for workers varies at different times of the year

BUnemployment created by a significant change in the nature of industries

CUnemployment created as workers leave one job and move to another

DUnemployment created as a result of business failures in the market place.

Answer : C

Question 6

Which of the following best defines the term 'equilibrium price'? (2 marks)

AThe price at which the level of demand in a market exceeds the level of supply

BThe price at which all commodities are of equal value in a market

CThe price at which the level of supply in a market exceeds the level of demand

DThe price at which the level of supply in a market matches the level of demand.

Answer : D

Question 7

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

CIPS Analyzing the Supply Market A6 Exam Practice Test