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PRAXIS Praxis Business Education: Content Knowledge (5101)Exam Sample Questions:

1. Which of the following statements best describes a recession?

A) The amount of goods a given amount of money buys declines.
B) Demand for goods and services falls and unemployment rises.
C) Businesses expand production and unemployment rises.
D) Demand for goods and services rises and productivity falls.

2. Which of the following is the best example of eminent domain?

A) The state government intends to build a ramp to the highway and takes privately owned land to complete the building project.
B) The local government tells homeowners that they may not build a multifamily dwelling in an area containing only single-family dwellings.
C) The state government grants property ownership to homeowners who discover the property line runs through the middle of their home.
D) The local government lays pipeline beneath the surface of privately owned land.

3. Which of the following is an example of place utility?

A) Products requested by the consumer are ordered on demand.
B) Arrangements are made for the transfer of title from seller to buyer.
C) Goods or services are available at a convenient location when the consumer wants to buy them.
D) A business firm converts raw materials into finished products.

4. The vast majority of funds appropriated in the form of grants under the Perkins Act is awarded to which of the following entities?

A) Early college high schools
B) State education agencies
C) Career and technology schools
D) School boards

5. Which of the following is a primary reason for a country to employ the policy of protectionism?

A) Foreign competition can lower the demand for products made domestically.
B) Competition forces businesses to be more efficient and productive.
C) Consumers have more choice in the variety, price, and quality of products.
D) New jobs are created in areas such as global trade.

Solutions: