DEMO QUESTIONS

Q1:

Your team is preparing a new Claude application for production, and the product team has asked for a cost projection. The team needs to estimate the cost based on expected request volume, average input length, and average output length. How would you build the projection?

A: Build a cost model that uses the average per-request cost from a similar Claude application the team built last year, scaling that figure by expected request volume.

B: Build a cost model that combines expected request volume, average input tokens, average output tokens, the chosen model's pricing, and any caching benefits.

C: Build a cost model that combines expected request volume and average input tokens, treating output tokens as a small enough share of cost to leave out of the projection.

D: Build a cost model based on expected request volume and the chosen model's pricing, treating average input and output token counts as variables to be estimated post-launch.

Correct Answer: B

Option B is correct because Claude API cost is fundamentally driven by usage volume multiplied by the token economics of the selected model and features. A credible projection must therefore estimate requests, average input tokens per request, average output tokens per request, applicable input/output prices, and expected prompt-cache behavior. Anthropic’s pricing documentation treats input, output, cache writes, and cache reads as distinct billable categories, with cache hits priced below standard input processing.

A practical forecast can be modeled as: request volume expected per-request input cost plus request volume expected per-request output cost, adjusted for cache-write/read rates and any other applicable pricing modifiers. The model should also include ranges for variance rather than only one point estimate, because token lengths and cache-hit rates will fluctuate in production.

Option A assumes a historical application has the same token profile and pricing, which may be false. Option C omits output tokens even though output pricing can be a material share of cost. Option D postpones the very token estimates the product team needs before launch.

Therefore, B is the complete projection method. Relevant Study Guide topics: token accounting, model pricing, prompt caching, cost forecasting, workload sizing, and production economics.

Q2:

You are designing a multi-step Claude workflow where some steps must reason without seeing the full prior conversation history. The team wants to keep specific context isolated to specific steps.

The context engineering technique you would use is…

A: Augmenting the context with all available content at every step so each step has access to the entire prior history of the workflow during its reasoning.

B: Using a single global prompt that applies to every step in the workflow no matter what each step is reasoning about during its run.

C: Context isolation through subagents or multi-step agentic workflows that scope each step's context to only what the step needs.

D: Embedding the full prior history in each step regardless of whether the step needs the prior history for its reasoning.

Correct Answer: C

Option C is the correct application of context isolation. A specialized step should receive the minimum relevant information required for its own task rather than inheriting an ever-growing global transcript. This improves signal-to-noise ratio, limits accidental cross-task influence, controls token usage, and makes individual components easier to evaluate.

Anthropic’s context-engineering guidance explicitly identifies multi-agent architectures as a technique for long-horizon work. Specialized subagents can operate with their own context windows and return condensed results to an orchestrating agent rather than exposing every agent to every intermediate detail. This architecture protects each reasoning process from irrelevant history while allowing the overall system to preserve necessary state.

Options A and D represent the opposite approach: indiscriminately loading the full prior history. Larger context is not automatically better; Anthropic warns that excessive context can introduce context pollution and degrade retrieval or attention to important information. B also fails because a single global prompt does not isolate state or tailor the information available to each processing stage.

Therefore, C best implements scoped reasoning boundaries. Relevant Claude Developer topics are multi-agent architecture, subagents, context isolation, context engineering, orchestration, and long-running workflow design.

Q3:

You are setting up Claude Code for a new project repository. Your team has shared coding standards, preferred libraries, and project-specific context that every developer working on the repository should have available when they use Claude Code.

How would you set this up?

A: Document the standards in a separate wiki page maintained outside the repository so the documentation stays decoupled from the source code.

B: Configure Claude Code through environment variables that each developer sets on their own machine when they begin working in the repository.

C: Initialize Claude Code in the repository and document the standards and project-specific context in a CLAUDE.md file at the repository root.

D: Add the coding standards and project context to the repository's existing README file and direct developers to reference it when starting Claude Code sessions.

Correct Answer: C

Option C is correct. Claude Code uses CLAUDE.md as the standard mechanism for supplying persistent project-level instructions and context. Anthropic’s Claude Code documentation states that project instructions can be stored in ./CLAUDE.md or ./.claude/CLAUDE.md and shared with team members through source control. Appropriate content includes coding standards, architectural decisions, project conventions, build/test commands, preferred workflows, and information developers would otherwise need to repeat to Claude during every session. The /init command can also generate an initial CLAUDE.md based on the repository.

A wiki may be valuable for human documentation, but Claude Code does not automatically receive that material as project context. B creates developer-specific configuration and risks inconsistency across the team. D places the information in a human-facing README but does not use Claude Code’s purpose-built persistent instruction mechanism.

Therefore, C gives the repository a shared, version-controlled source of Claude-specific project guidance. Relevant Study Guide topics: CLAUDE.md, project configuration, persistent instructions, repository context, team standards, and configuration management.

Q4:

A teammate has asked you to explain when a Skill would be the right choice over an MCP server. The teammate is unsure how the two differ in practice when both can be reused across teams.

How would you explain the distinction?

A: A Skill and an MCP server are equivalent extension mechanisms that the team can use interchangeably for any reusable capability that needs to be accessible across teams.

B: A Skill is the older mechanism and an MCP server is the newer one, so the team should prefer an MCP server for any reusable capability that the team builds going forward.

C: A Skill is preferable for cross-team reuse because it loads more efficiently than an MCP server during normal operation in the team's typical multi-team workloads.

D: A Skill bundles prompts, scripts, and data into a package the model loads as a unit while an MCP server exposes resources, tools, and prompts through a standard client interface.

Correct Answer: D

The supplied Claude Developer question explicitly identifies D. The two mechanisms solve different extension problems. A Skill is a reusable package of domain expertise and workflow guidance. Anthropic describes Agent Skills as modular, filesystem-based capabilities containing instructions, metadata, and optional supporting resources such as scripts and templates, which Claude can load when relevant.

MCP, by contrast, defines a standardized mechanism for exposing external capabilities and context. Anthropic’s MCP integration supports MCP tools and, through client-side helpers, MCP prompts and resources. This makes MCP appropriate when Claude must communicate with an external server or reusable service interface rather than simply load packaged expertise.

Thus, Skills are appropriate for packaging repeatable instructions, procedures, scripts, templates, or domain knowledge. MCP servers are appropriate for exposing callable operations, external data resources, and shared service capabilities using the Model Context Protocol.

A incorrectly treats them as interchangeable. B incorrectly describes the difference as merely generational. C invents a universal efficiency advantage that is not the architectural distinction.

Relevant Claude Developer topics: Agent Construction, Agent Skills, MCP, reusable capabilities, resources, prompts, tools, extension architecture, and cross-team component reuse.

Q5:

Your Claude application receives untrusted input from external sources. The team is establishing how the application should treat this untrusted input.

Untrusted input would be…

A: Validated and sanitized before being incorporated into prompts, and treated as data the model should not interpret as instructions.

B: Treated identically to trusted input from internal sources, on the grounds that all input the application receives can be handled the same way.

C: Routed through a separate Claude application with more lax security controls so the original application does not handle the untrusted input directly.

D: Blocked entirely so the application accepts only trusted input, with no path for legitimate external input the application might process.

Correct Answer: A

Option A is the appropriate trust-boundary treatment for external content. Untrusted text can contain malformed data, adversarial instructions, prompt-injection attempts, or content deliberately constructed to alter the agent’s behavior. It should therefore be validated or screened before inclusion and clearly represented as untrusted data rather than authoritative application instructions.

Anthropic’s prompt-injection guidance distinguishes direct attacks from indirect prompt injection, where Claude processes third-party content such as webpages, emails, documents, or tool output containing hostile instructions. Anthropic recommends input validation and screening, least-privilege access, safe treatment of untrusted tool content, and screening content before Claude acts on it. Importantly, Anthropic notes that tool-result content is treated as untrusted data rather than as a reliable place for application instructions.

B erases the trust distinction and exposes the application to instruction/data confusion. C introduces a deliberately weaker security boundary and does not sanitize the data. D prevents legitimate use cases unnecessarily; untrusted does not mean unusable—it means the data must be handled defensively.

Therefore, A correctly combines validation with explicit trust separation. Relevant Study Guide topics: prompt injection, untrusted content, input validation, sanitization, data/instruction separation, least privilege, and defense in depth.

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