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

1. Company A is the category leader in the orange juice industry and produces Product A at $3.00 per unit.
Company B is the second category leader in the industry and produces Product B at $2.70 per unit. Because an early frost affected the orange crop, Company A raised the price of Product A to $4.00 per unit. Company B subsequently raised the price of Product B to $3.60 per unit. Which of the following pricing strategies is Company B using for Product B?

A) Premium pricing
B) Pure parity
C) Dynamic parity
D) Discount pricing

2. 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) Career and technology schools
C) School boards
D) State education agencies

3. The Robinson-Patman Act was initially enacted for which of the following purposes?

A) To protect employees from job discrimination
B) To provide employees with a safe work environment
C) To eliminate price discrimination in intrastate commerce
D) To eliminate price discrimination in interstate commerce

4. If margarine and butter are substitute goods, which of the following will result in an increase in the demand for margarine?

A) A decrease in the supply of margarine
B) A decrease in the price of butter
C) An increase in the supply of margarine
D) An increase in the price of butter

5. A warehouse manager wants to clarify the date and time of an employee meeting and sends an instant message (IM) to another manager in the warehouse. The use of IM is considered acceptable because the sender is most likely to be

A) avoiding a permanent record
B) finishing a sensitive discussion
C) multitasking during a meeting
D) needing an immediate response

Solutions: