Free CIPS A6 Exam Actual Questions

The questions for A6 were last updated On Jan 17, 2025

Question No. 1

According to economic theory, which of the following best describes what should happen to the sales of a product if the government increases the tax on them?

AThe sales increase

BThe sales decrease

CThe sales remain the same

DThe sales double.

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Correct Answer: C

Question No. 2

Which of the following best describes the concept of price equilibrium???

AA price which will secure a company as many sales as its competitors

BA price which will improve a country??s balance of trade with other countries

CA price which will be achieved when the quantities demanded and supplied are the same

DA price which will be acceptable to customers, directors and shareholders.

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Correct Answer: A

Question No. 3

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

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Correct Answer: B

Question No. 4

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

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Correct Answer: C

Question No. 5

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

ACyclical

BFrictional

CMoving

DStructural

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Correct Answer: A