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

1. Which statement is true for a monopoly firm, but not for a competitive firm?

A) The firm is a price taker.
B) The marginal revenue equals the price.
C) Economic profit is zero in the long run.
D) The marginal revenue is less than its price.

2. What is the Nash equilibrium?

A) An agreement among firms in a market over production and price
B) A situation in which economic actors interacting with one another each choose their best strategy from among all available strategies currently being used by said actors
C) A group of firms illegally acting in unison to improve profits or dominate a market
D) A particular situation between two entities that illustrates why cooperation is difficult to maintain even when it is mutually beneficial

3. Which statement best summarizes the overall economic effect of tariffs?

A) They eliminate inefficiencies in global trade
B) They transfer surplus from consumers to producers and the government
C) They benefit consumers more than producers
D) They increase total economic surplus

4. Which statement describes one of the three views of globalization?

A) Globalization is an invested agreement to prevent international wars.
B) Globalization is a threat to product quality and technological innovation.
C) Globalization is a long-awaited solution to worldwide problems.
D) Globalization is a new force sweeping through the world in recent times.

5. Which characteristics are attributed to a democracy? (Choose THREE.)

A) It prohibits private ownership.
B) It prizes freedom of expression and organization.
C) It contains political risk that is lower than in other political systems.
D) It extends the right to organize economically to domestic and foreign firms.
E) It concentrates power in a single ruling party.

Solutions: