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

1. What is true about tariffs?

A) They increase the domestic quantity demanded.
B) They increase the quantity of imports.
C) They encourage consumers to reduce their consumption.
D) They lower the price of affected imported goods below the world price.

2. Managers and firms rationally pursue their interests and make choices within institutional constraints.
Which situation illustrates this proposition of the institution-based view of global business?

A) A firm introduces a new product due to consumer trends.
B) A firm increases advertising to boost brand awareness.
C) A firm lowers prices to gain market share.
D) A multinational relocates production after a minimum wage increase.

3. Costs that do not vary with output quantity divided by the quantity of output is best described by which term?

A) Marginal cost
B) Average variable cost
C) Total cost
D) Average fixed cost

4. Barriers to entry in a market are the main cause of monopolies. Which statement is accurate when the barrier to entry has its source in government regulation?

A) A single firm can supply a good or service to an entire market at a lower cost than two or more firms could.
B) Economies of scale allow a firm to create output at a lower cost than other competitors.
C) A key resource required for production is owned by a single firm.
D) A single firm has the exclusive legal right to produce some good or service.

5. What happens when the Federal Reserve increases the money supply?

A) The aggregate supply curve shifts to the right
B) The aggregate supply curve shifts to the left
C) The aggregate demand curve shifts to the right
D) The aggregate demand curve shifts to the left

Solutions: