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

1. Which good tends to have elastic demand?

A) A good with many complements
B) A good with close substitutes
C) A good with few complements
D) A good that is tangible

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

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

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

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

4. 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 fixed cost
C) Average variable cost
D) Total cost

5. A country has seen an increase in inflation. What is the effect on the country's currency exchange rate?

A) It increases.
B) It remains the same.
C) It decreases.
D) It changes, but in an unknown direction.

Solutions: