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

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

1. What are characteristics of a market economy? (Choose TWO.)

A) Supply, demand, and pricing are planned by the government.
B) Factors of production are government-owned or state-owned.
C) It is defined by a government taking the authoritative role in the economy.
D) It was first noted by Adam Smith in The Wealth of Nations in 1776.
E) It is characterized by the "invisible hand" of market forces.
F) It found a near ideal in China and the former Soviet Union during communism.

2. 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

3. How does the Federal Reserve lower the federal funds rate?

A) By purchasing government bonds
B) By raising reserve requirements
C) By increasing taxes
D) By selling government bonds

4. What are common types of barriers to entry that can cause a monopoly? (Choose TWO.)

A) Economies of scale in the production process
B) Free entry and exit
C) Elastic demand
D) A single firm owning a key resource
E) Perfect information

5. In an oligopoly with an initial agreement to maximize total profit, which statements might a firm motivated by self-interest likely make? (Choose THREE.)

A) "If my fellow firms fail to live up to the agreement and raise production, I am better off raising production myself."
B) "I should always cooperate, regardless of outcomes."
C) "I am better off reducing output below the agreed level."
D) "If my fellow firms live up to the agreement, I am better off raising production."
E) "Regardless of what my fellow firms do, I am better off raising production beyond the agreed-to level."

Solutions: