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C 211 GLOBAL ECONOMICS FOR MANAGERS WGU PRE
ASSESSMENT AND RETAKE SECTIONS IF YOU FAILED
THE OA 2025 QUESTIONS AND ANSWERS
If the United States threatens to impose a tariff on Colombian coffee if
Colombia does not remove agricultural subsidies, the United States will be
a. better off regardless of how Colombia responds.
b. better off if Colombia removes the subsidies, and will be no worse off if
it doesn't.
c. worse off regardless of how Colombia responds.
d. worse off if Colombia doesn't remove the subsidies in response to the
threat. - correct answer - worse off if Colombia doesn't remove the subsidies
in response to the threat.
What is the fundamental basis for trade among nations?
a. Shortages or surpluses in nations that do not trade
b. Absolute advantage
c. Comparative advantage
d. Misguided economic policies - correct answer - Comparative advantage
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A tax on an imported good is called a
a. tariff.
b. quota.
c. supply tax.
d. trade tax. - correct answer - tariff.
In a simple circular-flow diagram, total income and total expenditure are
a. never equal because total income always exceeds total
expenditure.
b. equal only when the government purchases no goods or services.
c. always equal because every transaction has a buyer and a seller.
d. seldom equal because of the ongoing changes in an economy's
unemployment rate. - correct answer - always equal because every
transaction has a buyer and a seller.
GDP is defined as the
a. value of all final goods and services produced within a country in a given
period of time.
b. value of all final goods and services produced by the citizens of a country,
regardless of where they are living, in a given period of time.
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c. value of all goods and services produced by the citizens of a country,
regardless of where they are living, in a given period of time.
d. value of all goods and services produced within a country in a given period
of time. - correct answer - value of all final goods and services produced within
a country in a given period of time.
Which of the following is included in GDP?
a. Neither the market value of owner-occupied housing services nor the
market value of rental housing services
b. The market value of rental housing services, but not the market value of
owner-occupied housing services
c. Both the market value of rental housing services and the market
value of owner-occupied housing services
d. The market value of owner-occupied housing services, but not the market
value of rental housing services - correct answer - Both the market value of
rental housing services and the market value of owner-occupied housing
services
A farmer produces oranges and sells them to Fresh Juice, which makes orange
juice. The oranges produced by the farmer are called
a. final goods.
b. inventory goods.
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c. intermediate goods.
d. transitory goods. - correct answer - intermediate goods.
For the purpose of calculating GDP, investment is spending on
a. capital equipment, inventories, and structures, excluding household
purchases of new housing.
b. capital equipment, inventories, and structures, including household
purchases of new housing.
c. stocks, bonds, and other financial assets.
d. real estate and financial assets such as stocks and bonds. - correct
answer - capital equipment, inventories, and structures, including
household purchases of new housing.
The value of goods added to a firm's inventory in a certain year is treated as
a. spending on durable goods, since the goods could not be inventoried
unless they were durable.
b. investment, since GDP aims to measure the value of the economy's
production that year.
c. consumption, since the goods will be sold to consumers in another
period.
d. intermediate goods, and so is not included in that year's GDP. - correct
answer - investment, since GDP aims to measure the value of the economy's
production that year.
C 211 GLOBAL ECONOMICS FOR MANAGERS WGU PRE
ASSESSMENT AND RETAKE SECTIONS IF YOU FAILED
THE OA 2025 QUESTIONS AND ANSWERS
If the United States threatens to impose a tariff on Colombian coffee if
Colombia does not remove agricultural subsidies, the United States will be
a. better off regardless of how Colombia responds.
b. better off if Colombia removes the subsidies, and will be no worse off if
it doesn't.
c. worse off regardless of how Colombia responds.
d. worse off if Colombia doesn't remove the subsidies in response to the
threat. - correct answer - worse off if Colombia doesn't remove the subsidies
in response to the threat.
What is the fundamental basis for trade among nations?
a. Shortages or surpluses in nations that do not trade
b. Absolute advantage
c. Comparative advantage
d. Misguided economic policies - correct answer - Comparative advantage
, Page | 2
A tax on an imported good is called a
a. tariff.
b. quota.
c. supply tax.
d. trade tax. - correct answer - tariff.
In a simple circular-flow diagram, total income and total expenditure are
a. never equal because total income always exceeds total
expenditure.
b. equal only when the government purchases no goods or services.
c. always equal because every transaction has a buyer and a seller.
d. seldom equal because of the ongoing changes in an economy's
unemployment rate. - correct answer - always equal because every
transaction has a buyer and a seller.
GDP is defined as the
a. value of all final goods and services produced within a country in a given
period of time.
b. value of all final goods and services produced by the citizens of a country,
regardless of where they are living, in a given period of time.
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c. value of all goods and services produced by the citizens of a country,
regardless of where they are living, in a given period of time.
d. value of all goods and services produced within a country in a given period
of time. - correct answer - value of all final goods and services produced within
a country in a given period of time.
Which of the following is included in GDP?
a. Neither the market value of owner-occupied housing services nor the
market value of rental housing services
b. The market value of rental housing services, but not the market value of
owner-occupied housing services
c. Both the market value of rental housing services and the market
value of owner-occupied housing services
d. The market value of owner-occupied housing services, but not the market
value of rental housing services - correct answer - Both the market value of
rental housing services and the market value of owner-occupied housing
services
A farmer produces oranges and sells them to Fresh Juice, which makes orange
juice. The oranges produced by the farmer are called
a. final goods.
b. inventory goods.
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c. intermediate goods.
d. transitory goods. - correct answer - intermediate goods.
For the purpose of calculating GDP, investment is spending on
a. capital equipment, inventories, and structures, excluding household
purchases of new housing.
b. capital equipment, inventories, and structures, including household
purchases of new housing.
c. stocks, bonds, and other financial assets.
d. real estate and financial assets such as stocks and bonds. - correct
answer - capital equipment, inventories, and structures, including
household purchases of new housing.
The value of goods added to a firm's inventory in a certain year is treated as
a. spending on durable goods, since the goods could not be inventoried
unless they were durable.
b. investment, since GDP aims to measure the value of the economy's
production that year.
c. consumption, since the goods will be sold to consumers in another
period.
d. intermediate goods, and so is not included in that year's GDP. - correct
answer - investment, since GDP aims to measure the value of the economy's
production that year.
