Which of the following best describes the pricing policy known as 'penetration pricing'?

A high price aimed at a quick recovery of costs

A price in line with that being charged by competitors

A low price set to gain a large share of the market

A temporary price reduction to increase sales or 'ward off ' competition.

Which of the following best describes the economic term 'monetary policy'?

The government controlling economic activity by regulating the level of taxation

The government controlling economic activity by reducing the budget deficit

The government controlling economic activity by influencing the rate of interest

The government controlling economic activity by reducing the national debt.

Which of the following best describes the '4Ps' of marketing (2 marks)

Product, Price, Promotion, Place

Promotion, Performance, Price, Place

Price, Placement, Product, Place

Performance, Product, Planning, Production

Which of the following examples of political activity is most likely to have an effect on a company's business?

The government increasing the tax on fuel and oil

The government's campaign leading up to a general election

The government tightening the rules for allowing asylum seekers to enter the country

The government providing aid to foreign countries.

Free CIPS A6 Exam Practice Questions & Explanations

Last updated on: Oct 10, 2026
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