WGU C211 OA Global Economics Exam
Questions and Correct Answers (Verified
Answers) Plus Rationales 2026 Q&A | Instant
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1. Which economic concept describes the value of the next best
alternative that is given up when a choice is made?
A. Marginal utility
B. Supply elasticity
C. Opportunity cost
D. Comparative advantage
Rationale: Opportunity cost represents the benefit that is sacrificed
when selecting one option over another. Because resources are
limited, every economic decision involves giving up an alternative use
of those resources.
2. Gross Domestic Product (GDP) measures:
,A. The total wealth owned by citizens of a country
B. The total government spending in an economy
C. The total market value of final goods and services produced within
a country during a specific period
D. The total amount of money circulating in a country
Rationale: GDP measures the value of all final goods and services
produced within a nation’s borders during a given time period. It is
commonly used as an indicator of economic performance.
3. A country has a comparative advantage in producing a good when
it:
A. Produces more goods than any other country
B. Has the largest workforce
C. Can produce the good at a lower opportunity cost than another
country
D. Has the most advanced technology
Rationale: Comparative advantage is based on opportunity cost, not
absolute productivity. Countries benefit from specializing in goods
where they sacrifice fewer resources compared with other producers.
, 4. Which organization is primarily responsible for promoting
international monetary cooperation and financial stability?
A. World Trade Organization (WTO)
B. International Monetary Fund (IMF)
C. United Nations Educational, Scientific and Cultural Organization
(UNESCO)
D. Organization of Petroleum Exporting Countries (OPEC)
Rationale: The IMF works to promote global monetary cooperation,
exchange rate stability, and financial assistance to countries
experiencing economic difficulties.
5. Inflation occurs when:
A. Production decreases permanently
B. Unemployment reaches zero
C. The general price level of goods and services rises over time
D. Interest rates decline
Rationale: Inflation refers to a sustained increase in the overall price
level. As inflation rises, the purchasing power of money decreases.
, 6. Which economic system relies primarily on supply and demand to
allocate resources?
A. Command economy
B. Traditional economy
C. Market economy
D. Socialist economy
Rationale: In a market economy, prices and production decisions are
mainly determined by consumer demand and producer supply rather
than government directives.
7. The balance of trade is calculated as:
A. Government spending minus taxes
B. Imports minus exports
C. Exports minus imports
D. GDP minus inflation
Rationale: The balance of trade measures the difference between the
value of exports and imports. A positive balance indicates a trade
surplus, while a negative balance indicates a trade deficit.
8. A tariff is:
Questions and Correct Answers (Verified
Answers) Plus Rationales 2026 Q&A | Instant
Download Pdf
1. Which economic concept describes the value of the next best
alternative that is given up when a choice is made?
A. Marginal utility
B. Supply elasticity
C. Opportunity cost
D. Comparative advantage
Rationale: Opportunity cost represents the benefit that is sacrificed
when selecting one option over another. Because resources are
limited, every economic decision involves giving up an alternative use
of those resources.
2. Gross Domestic Product (GDP) measures:
,A. The total wealth owned by citizens of a country
B. The total government spending in an economy
C. The total market value of final goods and services produced within
a country during a specific period
D. The total amount of money circulating in a country
Rationale: GDP measures the value of all final goods and services
produced within a nation’s borders during a given time period. It is
commonly used as an indicator of economic performance.
3. A country has a comparative advantage in producing a good when
it:
A. Produces more goods than any other country
B. Has the largest workforce
C. Can produce the good at a lower opportunity cost than another
country
D. Has the most advanced technology
Rationale: Comparative advantage is based on opportunity cost, not
absolute productivity. Countries benefit from specializing in goods
where they sacrifice fewer resources compared with other producers.
, 4. Which organization is primarily responsible for promoting
international monetary cooperation and financial stability?
A. World Trade Organization (WTO)
B. International Monetary Fund (IMF)
C. United Nations Educational, Scientific and Cultural Organization
(UNESCO)
D. Organization of Petroleum Exporting Countries (OPEC)
Rationale: The IMF works to promote global monetary cooperation,
exchange rate stability, and financial assistance to countries
experiencing economic difficulties.
5. Inflation occurs when:
A. Production decreases permanently
B. Unemployment reaches zero
C. The general price level of goods and services rises over time
D. Interest rates decline
Rationale: Inflation refers to a sustained increase in the overall price
level. As inflation rises, the purchasing power of money decreases.
, 6. Which economic system relies primarily on supply and demand to
allocate resources?
A. Command economy
B. Traditional economy
C. Market economy
D. Socialist economy
Rationale: In a market economy, prices and production decisions are
mainly determined by consumer demand and producer supply rather
than government directives.
7. The balance of trade is calculated as:
A. Government spending minus taxes
B. Imports minus exports
C. Exports minus imports
D. GDP minus inflation
Rationale: The balance of trade measures the difference between the
value of exports and imports. A positive balance indicates a trade
surplus, while a negative balance indicates a trade deficit.
8. A tariff is:
