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

1. What are key features of an oligopoly? (Choose THREE.)

A) The actions of any one seller have little impact on others' profits.
B) Firms are independent of one another, like competitive firms.
C) The actions of any one seller can have a large impact on the profits of other sellers.
D) There are a few sellers.
E) There is little motivation for cooperation between firms.
F) Firms in an oligopoly are interdependent in ways competitive firms are not.

2. Direct exports have which advantage?

A) Capitalization of economies of scale in production in the home country
B) Full control over foreign distribution
C) Lower transportation costs
D) Elimination of exchange rate risk

3. When the Federal Reserve decreases the money supply, what is the result?

A) The aggregate demand for imports increases.
B) The quantity of goods and services demanded for any given price decreases.
C) The quantity of goods and services demanded for one specific price increases.
D) The efficiency of market corrections is reduced.

4. 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) Exit the market altogether
D) Increase production

5. What is a characteristic of a market economy?

A) It found a near ideal in China and the former Soviet Union during the heydays of communism.
B) The government takes a hands-off approach known as laissez-faire.
C) Factors of production are government-owned or state-owned.
D) It is defined by a government taking the authoritative role in the economy.

Solutions: