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

1. What is the bandwagon effect?

A) The tendency of prices to return to equilibrium
B) Investors moving independently based on private information
C) The movement of investors in the same direction at the same time
D) Government intervention to stabilize markets

2. What is true about producer surplus?

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

3. What are examples of variable costs? Choose two answers.

A) The rent paid by a magazine publisher for its creative team
B) The CEO's salary for a major manufacturing firm
C) The monthly internet cost in a business that produces women's apparel
D) The cost of the parts used in individual devices made by a computer manufacturer
E) A $1,000 license fee charged by the state government to operate a shop
F) A 5% tax charged by the government on variable inputs

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

A) A firm purchasing competitors
B) Economies of scale in the production process
C) Government regulations prohibiting foreign investment
D) Elastic demand curves
E) Employee unions
F) Government regulations granting exclusive production rights

5. What happens when the Federal Reserve increases the money supply?

A) The aggregate demand curve shifts to the right
B) The aggregate demand curve shifts to the left
C) The aggregate supply curve shifts to the left
D) The aggregate supply curve shifts to the right

Solutions: