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WGU C211 GLOBAL ECONOMICS OA QUIZZES 2026/2027 |
Latest Questions & Verified Answers | Pass Guaranteed - A+
Graded
QUIZ 1: Foundations of Economics & Comparative Advantage (Q1-15)
Q1. Which fundamental economic concept explains why societies must make choices
about how to allocate limited resources among unlimited wants?
A. Marginal utility
B. Scarcity
C. Comparative advantage
D. Market equilibrium
Correct Answer: B. Scarcity [CORRECT]
Rationale: Scarcity is the foundational economic problem where unlimited human
wants confront limited productive resources, necessitating trade-offs and choices
about resource allocation.
Q2. A country can produce either 500 tons of wheat or 1,000 tons of rice using all its
resources. What is the opportunity cost of producing one ton of wheat?
A. 0.5 tons of rice
B. 1 ton of rice
C. 2 tons of rice
D. 1,000 tons of rice
Correct Answer: C. 2 tons of rice [CORRECT]
Rationale: Opportunity cost is calculated as what is given up divided by what is
gained. 1,000 rice ÷ 500 wheat = 2 tons of rice forgone per ton of wheat produced.
,2
Q3. The bowed-outward shape of a production possibilities frontier (PPF) illustrates
which economic principle?
A. Constant opportunity cost
B. Decreasing opportunity cost
C. Increasing opportunity cost due to diminishing returns
D. Zero opportunity cost
Correct Answer: C. Increasing opportunity cost due to diminishing returns
[CORRECT]
Rationale: The concave (bowed-outward) PPF reflects increasing opportunity cost
because resources are not perfectly adaptable to producing all goods; as more of
one good is produced, increasingly less suitable resources must be transferred,
causing diminishing returns.
Q4. On a PPF diagram, a point located inside the curve represents:
A. Economic growth
B. Efficient resource utilization
C. Unattainable production with current resources
D. Inefficient use of available resources
Correct Answer: D. Inefficient use of available resources [CORRECT]
Rationale: Points inside the PPF indicate that the economy is not using all available
resources fully or efficiently, while points on the curve represent efficiency and points
outside are unattainable with current resources and technology.
Q5. Country A can produce 10 cars or 20 computers per worker per day. Country B
can produce 8 cars or 16 computers per worker per day. Which statement is correct?
A. Country A has an absolute advantage in both goods; Country B has a comparative
advantage in cars
B. Country A has an absolute advantage in both goods; neither country has a
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comparative advantage
C. Country B has a comparative advantage in computers
D. Country A has an absolute advantage in both goods; opportunity costs are
identical
Correct Answer: D. Country A has an absolute advantage in both goods;
opportunity costs are identical [CORRECT]
Rationale: Country A can produce more of both goods (absolute advantage in both).
However, both countries have identical opportunity costs (1 car = 2 computers), so
neither has a comparative advantage and no gains from trade exist.
Q6. Country X can produce 1 ton of steel with 2 workers or 1 ton of wheat with 4
workers. Country Y can produce 1 ton of steel with 3 workers or 1 ton of wheat with
3 workers. Which country has a comparative advantage in wheat?
A. Country X
B. Country Y
C. Neither country
D. Cannot be determined
Correct Answer: B. Country Y [CORRECT]
Rationale: Country X's opportunity cost of 1 wheat = 2 steel (4 workers ÷ 2 workers).
Country Y's opportunity cost of 1 wheat = 1 steel (3 workers ÷ 3 workers). Country Y
has the lower opportunity cost in wheat and therefore holds the comparative
advantage.
Q7. Using the data from Question 6, which terms of trade would benefit both
countries if they specialize and trade?
A. 1 wheat for 3 steel
B. 1 wheat for 1.5 steel
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C. 1 wheat for 0.5 steel
D. 1 wheat for 2.5 steel
Correct Answer: B. 1 wheat for 1.5 steel [CORRECT]
Rationale: Mutually beneficial terms of trade must lie between the two countries'
opportunity costs (between 1 steel and 2 steel per wheat). 1.5 steel per wheat falls
within this range, benefiting both trading partners.
Q8. A student spends $20,000 on tuition and gives up $35,000 in foregone salary to
attend graduate school for one year. What is the total economic cost of attending?
A. $20,000
B. $35,000
C. $55,000
D. $15,000
Correct Answer: C. $55,000 [CORRECT]
Rationale: Economic cost includes both explicit costs ($20,000 tuition) and implicit
costs ($35,000 foregone salary). Economic profit calculations require subtracting both
explicit and implicit costs from total revenue.
Q9. A firm earns $500,000 in total revenue, pays $300,000 in explicit costs, and the
owner could earn $120,000 working elsewhere. What is the firm's economic profit?
A. $200,000
B. $80,000
C. $380,000
D. $80,000 loss
Correct Answer: B. $80,000 [CORRECT]
Rationale: Economic profit = Total revenue - Explicit costs - Implicit costs =
$500,000 - $300,000 - $120,000 = $80,000. Accounting profit would be $200,000
because it excludes implicit costs.
WGU C211 GLOBAL ECONOMICS OA QUIZZES 2026/2027 |
Latest Questions & Verified Answers | Pass Guaranteed - A+
Graded
QUIZ 1: Foundations of Economics & Comparative Advantage (Q1-15)
Q1. Which fundamental economic concept explains why societies must make choices
about how to allocate limited resources among unlimited wants?
A. Marginal utility
B. Scarcity
C. Comparative advantage
D. Market equilibrium
Correct Answer: B. Scarcity [CORRECT]
Rationale: Scarcity is the foundational economic problem where unlimited human
wants confront limited productive resources, necessitating trade-offs and choices
about resource allocation.
Q2. A country can produce either 500 tons of wheat or 1,000 tons of rice using all its
resources. What is the opportunity cost of producing one ton of wheat?
A. 0.5 tons of rice
B. 1 ton of rice
C. 2 tons of rice
D. 1,000 tons of rice
Correct Answer: C. 2 tons of rice [CORRECT]
Rationale: Opportunity cost is calculated as what is given up divided by what is
gained. 1,000 rice ÷ 500 wheat = 2 tons of rice forgone per ton of wheat produced.
,2
Q3. The bowed-outward shape of a production possibilities frontier (PPF) illustrates
which economic principle?
A. Constant opportunity cost
B. Decreasing opportunity cost
C. Increasing opportunity cost due to diminishing returns
D. Zero opportunity cost
Correct Answer: C. Increasing opportunity cost due to diminishing returns
[CORRECT]
Rationale: The concave (bowed-outward) PPF reflects increasing opportunity cost
because resources are not perfectly adaptable to producing all goods; as more of
one good is produced, increasingly less suitable resources must be transferred,
causing diminishing returns.
Q4. On a PPF diagram, a point located inside the curve represents:
A. Economic growth
B. Efficient resource utilization
C. Unattainable production with current resources
D. Inefficient use of available resources
Correct Answer: D. Inefficient use of available resources [CORRECT]
Rationale: Points inside the PPF indicate that the economy is not using all available
resources fully or efficiently, while points on the curve represent efficiency and points
outside are unattainable with current resources and technology.
Q5. Country A can produce 10 cars or 20 computers per worker per day. Country B
can produce 8 cars or 16 computers per worker per day. Which statement is correct?
A. Country A has an absolute advantage in both goods; Country B has a comparative
advantage in cars
B. Country A has an absolute advantage in both goods; neither country has a
,3
comparative advantage
C. Country B has a comparative advantage in computers
D. Country A has an absolute advantage in both goods; opportunity costs are
identical
Correct Answer: D. Country A has an absolute advantage in both goods;
opportunity costs are identical [CORRECT]
Rationale: Country A can produce more of both goods (absolute advantage in both).
However, both countries have identical opportunity costs (1 car = 2 computers), so
neither has a comparative advantage and no gains from trade exist.
Q6. Country X can produce 1 ton of steel with 2 workers or 1 ton of wheat with 4
workers. Country Y can produce 1 ton of steel with 3 workers or 1 ton of wheat with
3 workers. Which country has a comparative advantage in wheat?
A. Country X
B. Country Y
C. Neither country
D. Cannot be determined
Correct Answer: B. Country Y [CORRECT]
Rationale: Country X's opportunity cost of 1 wheat = 2 steel (4 workers ÷ 2 workers).
Country Y's opportunity cost of 1 wheat = 1 steel (3 workers ÷ 3 workers). Country Y
has the lower opportunity cost in wheat and therefore holds the comparative
advantage.
Q7. Using the data from Question 6, which terms of trade would benefit both
countries if they specialize and trade?
A. 1 wheat for 3 steel
B. 1 wheat for 1.5 steel
, 4
C. 1 wheat for 0.5 steel
D. 1 wheat for 2.5 steel
Correct Answer: B. 1 wheat for 1.5 steel [CORRECT]
Rationale: Mutually beneficial terms of trade must lie between the two countries'
opportunity costs (between 1 steel and 2 steel per wheat). 1.5 steel per wheat falls
within this range, benefiting both trading partners.
Q8. A student spends $20,000 on tuition and gives up $35,000 in foregone salary to
attend graduate school for one year. What is the total economic cost of attending?
A. $20,000
B. $35,000
C. $55,000
D. $15,000
Correct Answer: C. $55,000 [CORRECT]
Rationale: Economic cost includes both explicit costs ($20,000 tuition) and implicit
costs ($35,000 foregone salary). Economic profit calculations require subtracting both
explicit and implicit costs from total revenue.
Q9. A firm earns $500,000 in total revenue, pays $300,000 in explicit costs, and the
owner could earn $120,000 working elsewhere. What is the firm's economic profit?
A. $200,000
B. $80,000
C. $380,000
D. $80,000 loss
Correct Answer: B. $80,000 [CORRECT]
Rationale: Economic profit = Total revenue - Explicit costs - Implicit costs =
$500,000 - $300,000 - $120,000 = $80,000. Accounting profit would be $200,000
because it excludes implicit costs.
