WGU Global-Economics-for-Managers

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WGU Global-Economics-for-Managers Exam Syllabus Topics:

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

1. Which scenario most likely describes a late mover?

A) A company is able to erect significant barriers for other entrants.
B) A company faces fewer market uncertainties.
C) A company gains advantage through proprietary technology.
D) A company makes preemptive investments.

2. Which good tends to have elastic demand?

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

3. What is deadweight cost?

A) A government payment to a domestic firm
B) A net loss that occurs in an economy as a result of tariffs
C) A tariff levied on imports that are selling below cost in order to unfairly drive domestic firms out of business
D) The lost potential from pursuing one activity at the expense of another, given the alternatives

4. The marginal cost of producing a computer is $600, but the marginal revenue is $1,000. What is the best action for the respective firm?

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

5. When is it best for a firm to decrease production?

A) When the average variable cost is less than the price of a unit after a short-term stop.
B) When total revenue is greater than total cost.
C) When the price of a unit covers the average variable cost after a short-term stop.
D) When marginal cost is greater than marginal revenue.

Solutions: