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

1. Which quantity measures the market value of all final goods and services produced within a country in a given period of time?

A) Gross national income (GNI)
B) Net domestic product (NDP)
C) Gross domestic product (GDP)
D) National disposable income

2. What is true about producer surplus?

A) It is used to measure the well-being of sellers
B) It measures the well-being of consumers
C) It measures social welfare
D) It equals total revenue

3. The formula "fixed costs (FC) + variable costs (VC)" represents which quantity?

A) Implicit cost
B) Average cost
C) Total cost
D) Marginal cost

4. Managers and firms rationally pursue their interests and make choices within institutional constraints. This is one of the two core propositions underpinning an institution-based view of global business. Which situation illustrates this proposition?

A) Government corruption is rampant in a particular country, leading to a high cost of doing business.However, some smaller companies have figured out how to legally evade the most fraudulent abuses, and for them the cost of doing business becomes much cheaper. For this reason, the companies stay and have a lucrative decade.
B) Two failing banks are pursuing the option of being acquired by another institution. One bank is able to leverage political relationships to result in a successful acquisition. The other bank pursues no such political solution and eventually files for bankruptcy.
C) Several businesses relocate overseas because of a new domestic tax policy that will increase their tax liability by 15%.
D) When a company opens a new production facility, company leaders find out that the laws of that country may allow it to skip several important safety steps. In doing so, the cost of production goes down, but there is a risk to the surrounding environment. The leaders decide not to skip these safety steps out of a deep concern and commitment to environmental protection.

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

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

Solutions: