CSET Business Test Practice Questions

1. According to which personal finance concept does the value of money change over time?

A) Time value of money
B) Investing
C) Risk
D) Interest rate

2. What are the five Ps of marketing?

A) Problem, profile, progression, preparation, positioning
B) Pressure, power, proficiency, perseverance, profit
C) Props, parade, plateau, procedure, population
D) Product, price, promotion, place, people

3. Which of the following statements about scarcity is true?

A) Scarcity is mostly for poor people.
B) Scarcity means you must make a permanent choice.
C) Scarcity happens because resources have more than one use.
D) Scarcity has to be dealt with by individuals, not governments.

4. Which of the following market structures describes an industry in which there are only a few big firms that sell the same products, and it is very hard and costly to open a new firm?

A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly

5. The Robinson-Patman Act applies to:

A) insurance
B) commodities
C) photo processing
D) electricity

CSET Business Test Answers

1. Answer: A

Time value of money is the concept that the value of money changes over time because it has the potential to grow through investment. Answer choice B, investing, is related, but it is not the concept described in the question.

2. Answer: D

The five Ps of marketing are product, price, promotion, place (or distribution), and people.

3. Answer: C

Scarcity occurs when all of the goods and services that are desired are not obtainable. When a limited resource has more than one use, a choice has to be made regarding what it will be used for and what will be left out. Answers A and D are incorrect because everyone experiences scarcity, including governments. Answer B is incorrect because the choice is not permanent.

4. Answer: C

The industry described is an oligopoly. An example is major movie studios. Generally in oligopolies, the firms are interdependent and have rigid prices without much price competition. Other behaviors common to oligopolies are mergers and collusion. Answer choices A, B, and D are other types of market structures.

5. Answer: B

The Robinson-Patman Act only applies to the sales of commodities or tangible goods. Answer choices A and D may have varied pricing, and they can be bought and sold, but they are services. Answer choice C, photo processing, includes both a service and tangible goods, but because service has been determined as the main feature the Robinson-Patman Act does not apply. The main feature of the product has to be a commodity.