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

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

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

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

2. Which situation illustrates the proposition that when formal constraints are unclear or fail, informal constraints play a larger role in reducing uncertainty and providing constancy to firms?

A) A firm follows strict environmental practices despite lax local laws
B) Firms relocating overseas due to a new domestic tax policy
C) Choosing a headquarters location based on cost of living, airports, and tax credits
D) Firms entering gray markets due to high taxes

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

4. In order to increase the money supply, what does the Federal Reserve do?

A) Increases reserve requirements
B) Raises the federal funds rate
C) Buys government bonds from the public
D) Sells government bonds to the public

5. Which scenario demonstrates a monopoly created by a resource?

A) A bridge is so infrequently used that it has a large fixed cost and negligible marginal cost.
B) An author copyrights a new book.
C) A new rare jewel is found, and only one mine in the world has it.
D) A software company copyrights the code for new software.

Solutions: