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PRAXIS Praxis Business Education: Content Knowledge (5101)Exam Sample Questions (Q36-Q41):

NEW QUESTION # 36
Martha sold 1,000 poinsettia plants at $9 each and had 100 remaining in inventory. Joe sold 1,000 poinsettia plants at $8 each and had none remaining in inventory. Which of the following can be inferred from the scenario?

A. Martha's price is below equilibrium.
B. Joe's price and Martha's price are at equilibrium.
C. Only Joe's price is at equilibrium.
D. Joe's price and Martha's price are above equilibrium.

Answer: C

Explanation:
In a market, equilibrium price clears inventory (no surplus or shortage). Joe sold all 1,000 plants at $8 with no inventory left, suggesting his price is at equilibrium. Martha sold 1,000 plants at $9 but has 100 left, indicating a surplus, so her price is above equilibrium. Option A is incorrect, as Martha's price is not below equilibrium. Option B is incorrect, as Martha's price is not at equilibrium. Option D is incorrect, as Joe's price is at equilibrium. This question falls under the Economics category, focusing on supply and demand.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Economics; Principles of Economics, Chapter 4.

NEW QUESTION # 37
Which THREE of the following are the primary responsibilities of a human resources department?

A. Advising employees on privacy rights and health insurance options
B. Communicating employer policies and expectations
C. Facilitating new employees' orientation
D. Developing new product designs and production strategies
E. Compiling and posting financial statements

Answer: A,B,C

Explanation:
Human resources (HR) departments focus on employee-related functions. Option A (facilitating orientation) is a core HR responsibility to onboard new employees. Option C (communicating policies) ensures employees understand workplace expectations. Option E (advising on privacy and insurance) involves HR's role in employee benefits and compliance. Option B (financial statements) is a finance department task. Option D (product designs) belongs to product development or engineering. This question aligns with the Management and Marketing category, emphasizing HR functions.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Management and Marketing; Human Resource Management, Chapter 1.

NEW QUESTION # 38
The easiest and most popular business structure to implement is a

A. corporation
B. partnership
C. sole proprietorship
D. limited liability company

Answer: C

Explanation:
A sole proprietorship is the easiest and most popular business structure to implement due to its simplicity, requiring minimal legal formalities, low setup costs, and direct control by the owner. Option A (partnership) involves agreements between multiple parties, increasing complexity. Option B (corporation) requires extensive legal and regulatory compliance. Option C (limited liability company) involves more paperwork than a sole proprietorship. This question falls under the Entrepreneurship category, emphasizing business structures.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Entrepreneurship; Business Law, Chapter 13.

NEW QUESTION # 39
Distribution, pricing, and promotion of the product are presented in which section of the business plan?

A. Organization
B. Merchandising
C. Production
D. Marketing

Answer: D

Explanation:
The marketing section of a business plan outlines strategies for distribution (how the product reaches customers), pricing (cost to customers), and promotion (advertising and sales efforts). Option B (production) focuses on manufacturing processes. Option C (merchandising) is a retail function, not a business plan section. Option D (organization) covers management structure. This question falls under the Management and Marketing category, focusing on business planning.
Reference:ETS Praxis Business Education: Content Knowledge (5101) StudyCompanion, Section on Management and Marketing; Entrepreneurship: Starting and Operating a Small Business, Chapter 7.

NEW QUESTION # 40
Under ordinary circumstances, the average amount of unemployment in an economy is called the

A. natural rate of unemployment
B. typical rate of unemployment
C. cyclical rate of unemployment
D. frictional rate of unemployment

Answer: A

Explanation:
The natural rate of unemployment is the average level of unemployment in an economy under normal conditions, including frictional and structural unemployment but excluding cyclical unemployment. Option A (cyclical) relates to economic downturns. Option B (typical) is not a standard term. Option C (frictional) is a component of the natural rate but not the full concept. This question aligns with the Economics category, emphasizing labor economics.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Economics; Principles of Economics, Chapter 28.

NEW QUESTION # 41
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