CBE Evaluation Format and Content 3

Question 1

Which scenario best illustrates an application-level CBE exam question as opposed to a recall question?

Accepted Answer

Given quarterly GDP data showing two consecutive declines, identify the likely Fed policy response

Answer

Application questions require candidates to use economic knowledge to analyze a scenario, not just recall definitions.

Question 2

The CBE exam's International Trade and Finance domain would most likely test a candidate's understanding of:

Accepted Answer

Exchange rate determination, balance of payments, and trade policy effects

Answer

International Trade and Finance covers cross-border economic relationships including exchange rates and trade policy.

Question 3

A CBE candidate notices that the Financial Markets and Instruments domain appears on the content outline. This domain most likely includes questions on:

Accepted Answer

Interest rate determinants, bond pricing, equity valuation, and derivatives basics

Answer

Financial Markets and Instruments covers securities, pricing mechanisms, and related financial instruments.

Question 4

Why might the CBE exam include questions about data interpretation and quantitative methods?

Accepted Answer

Business economists must analyze datasets, build forecasts, and communicate quantitative findings in practice

Answer

Applied quantitative skills are central to the business economist's role, justifying their inclusion in the exam.

Question 5

An item with a stem, four answer options, and one correct answer—with the remaining three designed to be plausible—is known in testing terminology as:

Accepted Answer

A four-option multiple-choice item with distractors

Answer

The incorrect but plausible answer options are called distractors, and this is the standard CBE item format.

(CBE) Certified Business Economist Practice Test

(CBE) Certified Business Economist Practice Test

CBE Evaluation Format and Content 3