WGU C211 OA Global Economics Exam
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Answers, 100% Guarantee Pass
1. The fundamental economic problem is:
A) Unemployment
B) Inflation
C) Scarcity
D) Greed
Answer: C
Rationale: Scarcity is the foundational concept of economics. It states that human
wants are infinite, but the resources to fulfill those wants are limited. This
necessitates choice and trade-offs.
2. The opportunity cost of a new public stadium is the:
A) Money cost of the stadium
B) Value of other goods and services that must be sacrificed to build it
C) Cost of hiring additional police for security
D) Tax revenue generated by the stadium
Answer: B
Rationale: Opportunity cost is the value of the next best alternative foregone
when a choice is made. It is not just the monetary cost, but the value of what
those resources could have produced otherwise.
,3. A point outside the Production Possibilities Frontier (PPF) represents:
A) Unemployment
B) Inefficient use of resources
C) An unattainable production level given current resources
D) An efficient use of resources
Answer: C
Rationale: The PPF shows the maximum possible output combinations. Points on
the line are efficient, points inside are inefficient (unused resources), and points
outside are currently unattainable without economic growth or more resources.
4. Economic growth is represented by a:
A) Movement along the PPF
B) Shift inward of the PPF
C) Shift outward of the PPF
D) Movement from a point inside the PPF to a point on the PPF
Answer: C
Rationale: An outward shift of the PPF indicates that the economy's capacity to
produce has increased, which is the definition of economic growth.
5. If the price of a good increases and total revenue decreases, the demand for
the good is:
A) Elastic
B) Inelastic
C) Unit elastic
D) Perfectly inelastic
, Answer: A
Rationale: If total revenue moves in the opposite direction of price, demand is
elastic. Consumers are highly responsive to price changes, so a price increase
leads to a proportionally larger drop in quantity demanded.
6. Which of the following will cause a movement along the demand curve for
pizza?
A) A change in the price of pizza
B) A change in consumer income
C) A change in the price of hamburgers (a substitute)
D) A change in consumer tastes for pizza
Answer: A
Rationale: A change in the price of the good itself causes a movement along the
curve (change in quantity demanded). All other options are determinants of
demand that shift the entire curve.
7. If two goods are complements, a decrease in the price of one good will:
A) Decrease the demand for the other good
B) Increase the demand for the other good
C) Increase the quantity demanded of the other good
D) Have no effect on the other good
Answer: B
Rationale: Complements are consumed together (e.g., hot dogs and hot dog
buns). If the price of hot dogs falls, people buy more hot dogs, which shifts the
demand curve for buns to the right (increased demand).
() Questions and Verified
Answers, 100% Guarantee Pass
1. The fundamental economic problem is:
A) Unemployment
B) Inflation
C) Scarcity
D) Greed
Answer: C
Rationale: Scarcity is the foundational concept of economics. It states that human
wants are infinite, but the resources to fulfill those wants are limited. This
necessitates choice and trade-offs.
2. The opportunity cost of a new public stadium is the:
A) Money cost of the stadium
B) Value of other goods and services that must be sacrificed to build it
C) Cost of hiring additional police for security
D) Tax revenue generated by the stadium
Answer: B
Rationale: Opportunity cost is the value of the next best alternative foregone
when a choice is made. It is not just the monetary cost, but the value of what
those resources could have produced otherwise.
,3. A point outside the Production Possibilities Frontier (PPF) represents:
A) Unemployment
B) Inefficient use of resources
C) An unattainable production level given current resources
D) An efficient use of resources
Answer: C
Rationale: The PPF shows the maximum possible output combinations. Points on
the line are efficient, points inside are inefficient (unused resources), and points
outside are currently unattainable without economic growth or more resources.
4. Economic growth is represented by a:
A) Movement along the PPF
B) Shift inward of the PPF
C) Shift outward of the PPF
D) Movement from a point inside the PPF to a point on the PPF
Answer: C
Rationale: An outward shift of the PPF indicates that the economy's capacity to
produce has increased, which is the definition of economic growth.
5. If the price of a good increases and total revenue decreases, the demand for
the good is:
A) Elastic
B) Inelastic
C) Unit elastic
D) Perfectly inelastic
, Answer: A
Rationale: If total revenue moves in the opposite direction of price, demand is
elastic. Consumers are highly responsive to price changes, so a price increase
leads to a proportionally larger drop in quantity demanded.
6. Which of the following will cause a movement along the demand curve for
pizza?
A) A change in the price of pizza
B) A change in consumer income
C) A change in the price of hamburgers (a substitute)
D) A change in consumer tastes for pizza
Answer: A
Rationale: A change in the price of the good itself causes a movement along the
curve (change in quantity demanded). All other options are determinants of
demand that shift the entire curve.
7. If two goods are complements, a decrease in the price of one good will:
A) Decrease the demand for the other good
B) Increase the demand for the other good
C) Increase the quantity demanded of the other good
D) Have no effect on the other good
Answer: B
Rationale: Complements are consumed together (e.g., hot dogs and hot dog
buns). If the price of hot dogs falls, people buy more hot dogs, which shifts the
demand curve for buns to the right (increased demand).
