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

1. What is a tariff levied on imports that are selling below cost in order to unfairly drive domestic firms out of business?

A) Antidumping duty
B) Opportunity cost
C) Deadweight cost
D) Factor endowment

2. What are characteristics of a market economy? (Choose TWO.)

A) It is characterized by the "invisible hand" of market forces.
B) It is defined by a government taking the authoritative role in the economy.
C) Supply, demand, and pricing are planned by the government.
D) It found a near ideal in China and the former Soviet Union during communism.
E) Factors of production are government-owned or state-owned.
F) It was first noted by Adam Smith in The Wealth of Nations in 1776.

3. What is the profit maximization condition for a monopoly?

A) When total revenue is maximized
B) When price equals marginal cost
C) When marginal revenue equals marginal cost
D) When marginal cost is minimized

4. What are costs to home countries of foreign direct investment (FDI)? (Choose TWO.)

A) Loss of sovereignty
B) Loss of intellectual property
C) Cultural disintegration
D) Job loss
E) Capital outflow
F) Reduced standard of living

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

Solutions: