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

1. What is an example of a company that is market-seeking?

A) A company searching for a location where a specific type of plastic is low-cost and readily available
B) A company searching for a location where there is a high interest in camping supplies
C) A company searching for a location where the cost of unskilled labor is low
D) A company searching for a location where rocks and minerals can be mined

2. 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 single firm has the exclusive legal right to produce some good or service.
D) A key resource required for production is owned by a single firm.

3. If the demand for a good is inelastic, what is true?

A) Quantity demanded responds only slightly to price changes
B) Price and total revenue move in opposite directions
C) Quantity demanded responds substantially to price changes
D) Consumers are highly sensitive to price changes

4. What is one of the elements of the Porter Diamond in the theory of national competitive advantage of industries?

A) Foreign supply markets
B) Firm opportunity costs
C) Domestic demand conditions
D) Trade deficits

5. Which transaction is included in the consumption component of GDP?

A) A person pays for a haircut
B) A government builds a highway
C) A company exports automobiles
D) A firm purchases new machinery

Solutions: