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

1. Which of the following terms refers to a prescribed code of behavior for communicating over the Internet?

A) Hacking
B) Netiquette
C) Piracy
D) Privacy

2. Which of the following best illustrates a progressive tax system?

A) Taxpayers pay a flat percentage tax on sales, so that those who spend more pay more in taxes.
B) All taxpayers pay the same percentage of their income in taxes, with those who have higher incomes paying more in taxes.
C) Taxpayers pay taxes based on income brackets, with the percentage of taxes paid on income increasing as the taxpayer moves to a higher bracket.
D) Taxpayers pay a flat percentage tax based on the total value of their real estate holdings.

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

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

4. To exchange one currency for another in international transactions, companies rely on a mechanism called the

A) Eurocurrency market
B) foreign exchange market
C) international bond market
D) international equity market

5. If $500 were placed in a savings account that pays 2.5% simple interest each year, how much interest would be earned in five years?

A) $62.50
B) $12.50
C) $6,250
D) $625

Solutions: