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PRAXIS Praxis Business Education: Content Knowledge (5101)Exam Sample Questions (Q91-Q96):

NEW QUESTION # 91
Which of the following laws establishes the right to form unions?

A. Taft-Hartley Act
B. Norris-LaGuardia Act
C. Fair Labor Standards Act
D. National Labor Relations Act

Answer: D

Explanation:
The National Labor Relations Act (NLRA) of 1935, also known as the Wagner Act, establishes workers' rights to form unions, engage in collective bargaining, and participate in strikes. Option B (Norris-LaGuardia Act) limits injunctions against unions but does not establish the right to form them. Option C (Taft-Hartley Act) regulates union activities but does not grant formation rights. Option D (Fair Labor Standards Act) addresses wages and hours, not unions. This question falls under the Business Law category, focusing on labor law.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Business Law; Business Law: Text and Cases, Chapter 34.

NEW QUESTION # 92
Ergonomics is the science that deals with which of the following?

A. Designing furniture or equipment to prevent repetitive-strain injuries
B. Creating the work flow of a company, industry, department, or person
C. Organizing work flow to maximize the allocation of resources
D. Managing by walking around

Answer: A

Explanation:
Ergonomics is the science of designing workplaces, equipment, and furniture to fit the user, reducing physical strain and preventing injuries like repetitive-strain injuries. Option A (work flow) relates to process management. Option C (managing by walking around) is a management style. Option D (resource allocation) pertains to operations management. This question aligns with the Information Technology category, emphasizing workplace design.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Information Technology; Human Factors and Ergonomics, Chapter 1.

NEW QUESTION # 93
The primary purpose of the income statement of a business is to provide

A. the financial progress of the business for a specific period of time
B. the financial projections for the business for a specific period of time
C. a listing of accounts receivable and accounts payable on a specific date
D. the debt-to-equity ratio of the business on a specific date

Answer: A

Explanation:
The income statement, also known as the profit and loss statement, summarizes a company's revenues, expenses, and profits or losses over a specific period of time. Its primary purpose is to show the financial progress of the business, indicating whether it has made a profit or incurred a loss during that period. Option A (debt-to-equity ratio) is incorrect because this ratio is derived from the balance sheet, not the income statement. Option B (financial projections) refers to forecasts or budgets, not historical performance, which is the focus of the income statement. Option D (accounts receivable and payable) is also related to the balance sheet, not the income statement. The correct answer, C, aligns with the Praxis 5101 content category of Accounting and Finance, which includes understanding financial statements.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Accounting and Finance; Horngren's Financial & Managerial Accounting, Chapter 2.

NEW QUESTION # 94
Which of the following is a primary reason for a country to employ the policy of protectionism?

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

Answer: C

Explanation:
Protectionism, such as tariffs or quotas, is used to shield domestic industries from foreign competition, which can reduce demand for local products. Option A (new jobs in trade) is not a primary reason, as protectionism focuses on existing industries. Option B (consumer choice) is reduced by protectionism. Option D (efficiency) is a benefit of free trade, not protectionism. This question aligns with the Economics category, focusing on trade policy.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Economics; International Economics, Chapter 9.

NEW QUESTION # 95
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. Joe's price and Martha's price are at equilibrium.
B. Joe's price and Martha's price are above equilibrium.
C. Only Joe's price is at equilibrium.
D. Martha's price is below 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 # 96
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