WGU C211 Global Economics exam with answers

WGU C211 Global Economics exam with
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answers

Suppose that the United States imposes a
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tariff on avocados imported from Mexico.
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What impact will this have on the price paid
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for avocados by United States citizens? - CORRECT
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ANSWERS ✔✔The price will increase. |\ |\ |\ |\




Which of the following is a consequence of a
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country imposing a tariff on imported goods? - CORRECT
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ANSWERS ✔✔The demand for foreign produced goods
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decreases.


Suppose that the United States imposes a
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tariff on salt. What impact might this tariff
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have on the price for domestic consumers? - CORRECT
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ANSWERS ✔✔Consumers will pay a higher price.
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Applying a tariff to coconuts will have the
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following effect: - CORRECT ANSWERS ✔✔Increase the
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domestic price of |\ |\

,coconuts.


Which of the following is NOT a restriction to
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trade? - CORRECT ANSWERS ✔✔Free trade areas.
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What is the significant difference between an
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import quota and a tariff? - CORRECT ANSWERS ✔✔A
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tariff raises revenue for the
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government and an import quota creates surplus for |\ |\ |\ |\ |\ |\ |\




those who obtain licenses to import.
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Suppose that the price of a good increases (all
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else held constant). Which of the following
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would happen along with the change in price? - CORRECT
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ANSWERS ✔✔Consumer surplus would decrease. |\ |\ |\ |\




Suppose that Bob goes to the market and is |\ |\ |\ |\ |\ |\ |\ |\




willing to pay $500 for a new chainsaw. Bob is
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able to find the chainsaw for only $400. Which
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of the following follows from Bob's
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circumstance? - CORRECT ANSWERS ✔✔His consumer |\ |\ |\ |\ |\ |\



surplus is $100. |\ |\

,Which statement is true of consumer surplus? - CORRECT
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ANSWERS ✔✔Consumer surplus represents value to |\ |\ |\ |\ |\




buyers in excess of the price paid for the product.
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Which statement is true? - CORRECT ANSWERS ✔✔Total
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surplus is the sum of consumer and
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producer surplus and is graphically represented as the
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area between the supply and demand curves up to the
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equilibrium quantity. |\




Suppose that Bob lives in the United States,
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but has been working in Mexico for the last 5 years.
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Where is the value of Bob's production
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counted during the last 5 years? - CORRECT ANSWERS
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✔✔U.S. GNP and Mexico's GDP.|\ |\ |\ |\




Which of the following statements describes
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gross domestic product (GDP)? - CORRECT ANSWERS
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✔✔GDP is the most used measure of a
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country's economic wellbeing. |\ |\




Which of the following is an investment
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included in the gross domestic product (GDP)
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, measure? - CORRECT ANSWERS ✔✔Spending on new
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residential
construction.


Gross Domestic Product (GDP) measures
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which of the following? - CORRECT ANSWERS ✔✔Market
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value of final goods and services
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produced within a country in a given period of time.
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Which item is NOT part of GDP? - CORRECT ANSWERS
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✔✔Purchasing a used hairdryer. |\ |\ |\




What is the key distinction between real and
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nominal GDP? - CORRECT ANSWERS ✔✔Real GDP
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measures production not |\ |\




affected by changes in prices while nominal GDP
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measures production measured at current prices.
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What is the change in total cost equal to in the
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marginal cost equation? - CORRECT ANSWERS
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✔✔Marginal cost multiplied by change in |\ |\ |\ |\ |\




quantity.