1
WGU C211 OBJECTIVE ASSESSMENT ACTUAL 2026/2027 |
Global Economics for Managers Exam | Verified Answers |
100% Guarantee Pass | A+ Graded
[Section 1: Foundational Economic Concepts for Managers (Q1-10)]
Q1. Which of the following best describes the economic concept of scarcity?
A. Scarcity reflects the fundamental condition of unlimited human wants confronting
limited resources, forcing trade-offs and choice. [CORRECT] B. Scarcity exists only in
developing nations with limited natural resources. C. Scarcity refers to the shortage
of goods caused by supplier production failures. D. Scarcity can be eliminated
through advanced technology and increased government spending.
Rationale: Scarcity is the universal economic problem arising from unlimited wants
relative to limited resources, necessitating choice and trade-offs in all economies
regardless of development level.
Correct Answer: A
Q2. A manager at a manufacturing firm must choose between investing $500,000 in
new automation equipment or using the funds to expand into a new geographic
market. If the manager selects the automation equipment, what is the opportunity
cost of this decision?
A. The value of the forgone expansion into the new geographic market. [CORRECT]
B. The $500,000 cash outlay for the automation equipment. C. The depreciation
expense of the automation equipment over its useful life. D. The interest that could
have been earned by keeping the $500,000 in a savings account.
Rationale: Opportunity cost is the value of the next best alternative foregone; while
the explicit cost is the $500,000 outlay, the opportunity cost specifically refers to the
forgone expansion opportunity, which is the next best alternative use of those
resources.
Correct Answer: A
Q3. A nation's production possibilities frontier (PPF) for goods X and Y is bowed
outward. As the economy produces more of good X, the opportunity cost of each
additional unit of X increases because:
,2
A. Resources are perfectly adaptable between the production of X and Y. B.
Technological progress automatically favors the production of good Y. C. Consumer
demand for good X decreases as more is produced. D. The law of increasing
opportunity cost reflects that resources are not perfectly adaptable to alternative
uses. [CORRECT]
Rationale: The bowed shape of the PPF illustrates increasing opportunity cost due to
the law of diminishing returns—resources are specialized and not perfectly
transferable between producing different goods.
Correct Answer: D
Q4. Which of the following would cause a nation's production possibilities frontier to
shift outward (to the right)?
A. Technological advancement that improves productivity in the manufacturing
sector. [CORRECT] B. An increase in the unemployment rate from 4% to 7%. C. A
decrease in the working-age population due to emigration. D. A reallocation of
resources from capital goods to consumer goods.
Rationale: A rightward PPF shift represents economic growth driven by increases in
resources, improvements in technology, or enhanced human capital; technological
advancement expands productive capacity.
Correct Answer: A
Q5. A restaurant manager is deciding whether to stay open one additional hour past
normal closing time. The additional revenue from that hour is $450, while the
additional labor, utilities, and food costs total $380. Using marginal analysis, what
should the manager decide?
A. Close at the normal time because total costs exceed total revenue for the day. B.
Stay open only if average total cost decreases during that hour. C. Stay open the
additional hour because marginal benefit ($450) exceeds marginal cost ($380).
[CORRECT] D. Close because the marginal revenue does not cover fixed costs for
that hour.
Rationale: Marginal analysis dictates that a decision should be pursued when
marginal benefit exceeds marginal cost; here $450 > $380, so staying open increases
profit by $70.
, 3
Correct Answer: C
Q6. In a market economy, the fundamental questions of what to produce, how to
produce it, and for whom to produce it are primarily answered by:
A. Central government planning committees that set production quotas. B.
Traditional customs and hereditary occupational structures. C. International trade
organizations that coordinate global production. D. The interaction of supply and
demand through the price system. [CORRECT]
Rationale: Market economies rely on decentralized decision-making where prices
signal scarcity and coordinate resource allocation, answering the fundamental
economic questions through voluntary exchange.
Correct Answer: D
Q7. A small business owner invests $100,000 of her own savings into her business.
She could have earned 5% annual interest by investing in corporate bonds. She also
gives up a $75,000 annual salary from her previous job. If the business generates
$200,000 in total revenue and has $80,000 in explicit costs, what is the business's
economic profit?
A. $40,000 [CORRECT] B. $120,000 C. $115,000 D. $20,000
Rationale: Economic profit = Total revenue - Explicit costs - Implicit costs. Explicit
costs = $80,000. Implicit costs = $75,000 (forgone salary) + $5,000 (forgone interest
= $100,000 × 5%) = $80,000. Economic profit = $200,000 - $80,000 - $80,000 =
$40,000.
Correct Answer: A
Q8. A country is currently producing inside its production possibilities frontier. Which
statement accurately describes this situation?
A. The country is experiencing unemployment or inefficient resource use, meaning it
could produce more of both goods. [CORRECT] B. The country is achieving
productive efficiency but not allocative efficiency. C. The country is utilizing all
available resources fully and efficiently. D. The country has exceeded its current
productive capacity.
WGU C211 OBJECTIVE ASSESSMENT ACTUAL 2026/2027 |
Global Economics for Managers Exam | Verified Answers |
100% Guarantee Pass | A+ Graded
[Section 1: Foundational Economic Concepts for Managers (Q1-10)]
Q1. Which of the following best describes the economic concept of scarcity?
A. Scarcity reflects the fundamental condition of unlimited human wants confronting
limited resources, forcing trade-offs and choice. [CORRECT] B. Scarcity exists only in
developing nations with limited natural resources. C. Scarcity refers to the shortage
of goods caused by supplier production failures. D. Scarcity can be eliminated
through advanced technology and increased government spending.
Rationale: Scarcity is the universal economic problem arising from unlimited wants
relative to limited resources, necessitating choice and trade-offs in all economies
regardless of development level.
Correct Answer: A
Q2. A manager at a manufacturing firm must choose between investing $500,000 in
new automation equipment or using the funds to expand into a new geographic
market. If the manager selects the automation equipment, what is the opportunity
cost of this decision?
A. The value of the forgone expansion into the new geographic market. [CORRECT]
B. The $500,000 cash outlay for the automation equipment. C. The depreciation
expense of the automation equipment over its useful life. D. The interest that could
have been earned by keeping the $500,000 in a savings account.
Rationale: Opportunity cost is the value of the next best alternative foregone; while
the explicit cost is the $500,000 outlay, the opportunity cost specifically refers to the
forgone expansion opportunity, which is the next best alternative use of those
resources.
Correct Answer: A
Q3. A nation's production possibilities frontier (PPF) for goods X and Y is bowed
outward. As the economy produces more of good X, the opportunity cost of each
additional unit of X increases because:
,2
A. Resources are perfectly adaptable between the production of X and Y. B.
Technological progress automatically favors the production of good Y. C. Consumer
demand for good X decreases as more is produced. D. The law of increasing
opportunity cost reflects that resources are not perfectly adaptable to alternative
uses. [CORRECT]
Rationale: The bowed shape of the PPF illustrates increasing opportunity cost due to
the law of diminishing returns—resources are specialized and not perfectly
transferable between producing different goods.
Correct Answer: D
Q4. Which of the following would cause a nation's production possibilities frontier to
shift outward (to the right)?
A. Technological advancement that improves productivity in the manufacturing
sector. [CORRECT] B. An increase in the unemployment rate from 4% to 7%. C. A
decrease in the working-age population due to emigration. D. A reallocation of
resources from capital goods to consumer goods.
Rationale: A rightward PPF shift represents economic growth driven by increases in
resources, improvements in technology, or enhanced human capital; technological
advancement expands productive capacity.
Correct Answer: A
Q5. A restaurant manager is deciding whether to stay open one additional hour past
normal closing time. The additional revenue from that hour is $450, while the
additional labor, utilities, and food costs total $380. Using marginal analysis, what
should the manager decide?
A. Close at the normal time because total costs exceed total revenue for the day. B.
Stay open only if average total cost decreases during that hour. C. Stay open the
additional hour because marginal benefit ($450) exceeds marginal cost ($380).
[CORRECT] D. Close because the marginal revenue does not cover fixed costs for
that hour.
Rationale: Marginal analysis dictates that a decision should be pursued when
marginal benefit exceeds marginal cost; here $450 > $380, so staying open increases
profit by $70.
, 3
Correct Answer: C
Q6. In a market economy, the fundamental questions of what to produce, how to
produce it, and for whom to produce it are primarily answered by:
A. Central government planning committees that set production quotas. B.
Traditional customs and hereditary occupational structures. C. International trade
organizations that coordinate global production. D. The interaction of supply and
demand through the price system. [CORRECT]
Rationale: Market economies rely on decentralized decision-making where prices
signal scarcity and coordinate resource allocation, answering the fundamental
economic questions through voluntary exchange.
Correct Answer: D
Q7. A small business owner invests $100,000 of her own savings into her business.
She could have earned 5% annual interest by investing in corporate bonds. She also
gives up a $75,000 annual salary from her previous job. If the business generates
$200,000 in total revenue and has $80,000 in explicit costs, what is the business's
economic profit?
A. $40,000 [CORRECT] B. $120,000 C. $115,000 D. $20,000
Rationale: Economic profit = Total revenue - Explicit costs - Implicit costs. Explicit
costs = $80,000. Implicit costs = $75,000 (forgone salary) + $5,000 (forgone interest
= $100,000 × 5%) = $80,000. Economic profit = $200,000 - $80,000 - $80,000 =
$40,000.
Correct Answer: A
Q8. A country is currently producing inside its production possibilities frontier. Which
statement accurately describes this situation?
A. The country is experiencing unemployment or inefficient resource use, meaning it
could produce more of both goods. [CORRECT] B. The country is achieving
productive efficiency but not allocative efficiency. C. The country is utilizing all
available resources fully and efficiently. D. The country has exceeded its current
productive capacity.
