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

1. What are three characteristics of industries primed for collusion? (Choose THREE.)

A) Free entry and exit
B) High product differentiation
C) Perfect information for consumers
D) A small number of rivals
E) Homogeneous products
F) A price leader

2. An institution-based view of global business focuses on the specific relationship between which two entities?

A) Firms and governments
B) Firms and institutions
C) Customers and institutions
D) Customers and firms

3. What is the Nash equilibrium?

A) A situation in which economic actors interacting with one another each choose their best strategy from among all available strategies currently being used by said actors
B) An agreement among firms in a market over production and price
C) A particular situation between two entities that illustrates why cooperation is difficult to maintain even when it is mutually beneficial
D) A group of firms illegally acting in unison to improve profits or dominate a market

4. A shopper purchases a shirt for $17 but was willing to pay $25. What does this indicate?

A) The consumer surplus is $8.
B) The producer surplus is $17.
C) The producer surplus is $25.
D) The consumer surplus is $25.

5. What is the definition of marginal cost?

A) The opportunity cost of capital
B) The increase in cost that arises from producing an additional unit of output
C) The fixed cost of production
D) The total cost divided by total output

Solutions: