C211 WGU OA Exam 1 Study Guide
2026|2027 Questions With Correct
Verified Answers A+ Rated
__ are represented by laws, regulations, and rules.
Formal institutions
Which of the following is true of private ownership?
Firms are established by entrepreneurs, owners, and investors.
Which of the following is the argument used by proponents of the "cultural"
explanation for the difference in economic development across the globe?
That rich countries have a smarter and harder-working population
____ are exclusive legal rights of authors and publishers to publish and
disseminate their work.
Copyrights
State ownership differs from private ownership in that in state ownership ___
protecting jobs and minimizing social unrest is the objective of a firm
____ refers to a legal system based on religious teachings.
Theocratic law
Which of the following is true of a command economy?
It does not allow private entrepreneurship.
The main supportive pillars of the informal institutions are ___
normative and cognitive
,Which of the following is a proposition of the institution-based view?
When formal constraints are unclear, informal constraints will play a larger role
in reducing uncertainty and providing constancy to managers and firms.
The theory of consumer choice provides the foundation for understanding the
demand for a firm's product.
When comparing bundle A to bundle E, the consumer
prefers bundle E because it lies on a higher indifference curve.
If a profit-maximizing monopolist faces a downward-sloping market demand
curve, its
marginal revenue is less than the price of the product.
Which of the following is not one of the ways that antitrust laws promote
competition?
Antitrust laws allow the government to shut down a firm if the government
believes the firm has monopoly power.
Which of the following statements is not correct?
Both monopolistic competition and perfect competition are characterized by
product differentiation.
A monopolistically competitive firm chooses
the quantity of output to produce, but the price of its output is determined by
demand.
Which of the following statements is true?
When a monopoly firm sells an additional unit of output, its revenue increases
by an amount less than the price.
If a firm in a perfectly competitive market triples the quantity of output sold,
then total revenue will
exactly triple.
, Suppose Jamie can choose between consuming two goods. If we observe that
Jamie's budget constraint has moved outward, then we know for certain that
she can reach a higher indifference curve
In both perfect competition and monopolistic competition, each firm
has many competitors.
If the firm doubles its output from 3 to 6 units, total revenue will
increase by exactly $15.
The intersection of a firm's marginal revenue and marginal cost curves
determines the level of output at which
profit is maximized.
Monopolies are socially inefficient because the price they charge is
above marginal cost.
Which of the following statements is correct?
Assuming that implicit costs are positive, accounting profit is greater than
economic profit.
Price discrimination is the business practice of
selling the same good at different prices to different customers.
Indifference curves illustrate
a consumer's preferences.
Which of the following is unique to a monopolistically competitive firm when
compared to an oligopoly?
Monopolistic competition features many sellers.
A monopoly can earn positive profits because it
can maintain a price such that total revenues will exceed total costs.
2026|2027 Questions With Correct
Verified Answers A+ Rated
__ are represented by laws, regulations, and rules.
Formal institutions
Which of the following is true of private ownership?
Firms are established by entrepreneurs, owners, and investors.
Which of the following is the argument used by proponents of the "cultural"
explanation for the difference in economic development across the globe?
That rich countries have a smarter and harder-working population
____ are exclusive legal rights of authors and publishers to publish and
disseminate their work.
Copyrights
State ownership differs from private ownership in that in state ownership ___
protecting jobs and minimizing social unrest is the objective of a firm
____ refers to a legal system based on religious teachings.
Theocratic law
Which of the following is true of a command economy?
It does not allow private entrepreneurship.
The main supportive pillars of the informal institutions are ___
normative and cognitive
,Which of the following is a proposition of the institution-based view?
When formal constraints are unclear, informal constraints will play a larger role
in reducing uncertainty and providing constancy to managers and firms.
The theory of consumer choice provides the foundation for understanding the
demand for a firm's product.
When comparing bundle A to bundle E, the consumer
prefers bundle E because it lies on a higher indifference curve.
If a profit-maximizing monopolist faces a downward-sloping market demand
curve, its
marginal revenue is less than the price of the product.
Which of the following is not one of the ways that antitrust laws promote
competition?
Antitrust laws allow the government to shut down a firm if the government
believes the firm has monopoly power.
Which of the following statements is not correct?
Both monopolistic competition and perfect competition are characterized by
product differentiation.
A monopolistically competitive firm chooses
the quantity of output to produce, but the price of its output is determined by
demand.
Which of the following statements is true?
When a monopoly firm sells an additional unit of output, its revenue increases
by an amount less than the price.
If a firm in a perfectly competitive market triples the quantity of output sold,
then total revenue will
exactly triple.
, Suppose Jamie can choose between consuming two goods. If we observe that
Jamie's budget constraint has moved outward, then we know for certain that
she can reach a higher indifference curve
In both perfect competition and monopolistic competition, each firm
has many competitors.
If the firm doubles its output from 3 to 6 units, total revenue will
increase by exactly $15.
The intersection of a firm's marginal revenue and marginal cost curves
determines the level of output at which
profit is maximized.
Monopolies are socially inefficient because the price they charge is
above marginal cost.
Which of the following statements is correct?
Assuming that implicit costs are positive, accounting profit is greater than
economic profit.
Price discrimination is the business practice of
selling the same good at different prices to different customers.
Indifference curves illustrate
a consumer's preferences.
Which of the following is unique to a monopolistically competitive firm when
compared to an oligopoly?
Monopolistic competition features many sellers.
A monopoly can earn positive profits because it
can maintain a price such that total revenues will exceed total costs.
