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

1. What is one characteristic of a market surplus?

A) Quantity supplied exceeds quantity demanded
B) There is upward pressure on price
C) Price is below equilibrium
D) Quantity demanded exceeds quantity supplied

2. In a monopoly, which statements are likely true? (Choose TWO.)

A) There are barriers to entry into the market
B) Firms are price takers
C) One seller offers a unique good with no close substitutes
D) Marginal revenue equals price
E) Entry is free in the long run

3. When producing a piece of luggage, the marginal cost is $92 and the marginal revenue is $81. What is the best action for the firm?

A) Increase production
B) Decrease production
C) Enter the market
D) Restart production

4. In which situation is the dodger strategy appropriate for responding to multinational enterprises (MNEs)?

A) There is high industry pressure to globalize, and competitive assets are customized to home markets.
B) There is high industry pressure to globalize, and competitive assets are transferable abroad.
C) There is low industry pressure to globalize, and competitive assets are transferable abroad.
D) There is low industry pressure to globalize, and competitive assets are customized to home markets.

5. When demand decreases and supply stays the same, what happens to the equilibrium point of price and quantity? (Choose TWO.)

A) Quantity increases
B) Price decreases
C) Price increases
D) Quantity decreases

Solutions: