WGU Global-Economics-for-Managers : WGU Global Economics for Managers (C211, UZC2)

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WGU Global Economics for Managers (C211, UZC2) Sample Questions:

1. When an import tariff is placed on footwear, which quantity increases?

A) Producer surplus for footwear
B) Consumer surplus for footwear
C) The quantity of footwear imported
D) Domestic demand for footwear

2. What is a key feature of an oligopoly?

A) Firms are price takers.
B) Entry is free in the long run.
C) The market represents a prisoner's dilemma.
D) Products are always homogeneous.

3. What does the term resource mobility describe?

A) An economic condition in which a nation exports more than it imports
B) The idea that market forces should determine how much to trade with little or no government intervention
C) The assumption that a resource removed from one industry can be moved to another
D) The idea that governments should actively defend domestic industries from imports and vigorously promote the export of resources

4. What is the most basic way for nonfinancial companies to adjust to fluctuations of the foreign exchange market?

A) Currency hedging
B) Rate locks
C) Invoicing customers in the company's currency
D) Forward transactions

5. The marginal revenue from producing a smartphone is $200, and the marginal cost is $150. What is the best action for the firm?

A) Decrease production
B) Pause production
C) Increase production
D) Exit the market altogether

Solutions: