WGU C211 Objective Assessment Global Economics for
Managers Exam () Questions and Verified
Answers,
The fundamental economic problem is:
A) Unemployment
B) Scarcity
C) Inflation
D) Market failure
Answer: B
The opportunity cost of a decision is:
A) The monetary cost of the choice made
B) The total value of all alternatives given up
C) The value of the next best alternative forgone
D) The cost of producing the good
Answer: C
A production possibilities frontier (PPF) bows outward because:
A) Resources are perfectly adaptable to producing both goods
B) Opportunity costs are constant
C) Resources are not perfectly adaptable to producing both goods
D) Technology improves over time
Answer: C
According to the law of demand, as the price of a good increases:
,A) Quantity demanded increases
B) Quantity demanded decreases
C) Supply increases
D) The demand curve shifts left
Answer: B
Which of the following will shift the demand curve to the right?
A) A decrease in the price of a substitute good
B) An increase in consumer income (for a normal good)
C) A decrease in the price of the good itself
D) An increase in the price of a complement good
Answer: B
If two goods are substitutes, a decrease in the price of one will cause:
A) The demand for the other to increase
B) The demand for the other to decrease
C) The supply for the other to increase
D) No change in the demand for the other
Answer: B
A price ceiling set below the equilibrium price will result in:
A) A surplus
B) A shortage
C) Equilibrium
D) An increase in supply
Answer: B
A price floor set above the equilibrium price will result in:
,A) A surplus
B) A shortage
C) An increase in demand
D) Equilibrium
Answer: A
If the cross-price elasticity of demand between two goods is negative, the goods
are:
A) Substitutes
B) Complements
C) Inferior goods
D) Normal goods
Answer: B
If demand is price inelastic, a price increase will:
A) Decrease total revenue
B) Increase total revenue
C) Leave total revenue unchanged
D) Reduce quantity demanded to zero
Answer: B
The income elasticity of demand for an inferior good is:
A) Positive
B) Negative
C) Zero
D) Greater than 1
Answer: B
Consumer surplus is defined as:
, A) The difference between what consumers are willing to pay and what they
actually pay
B) The total amount consumers pay for a good
C) The cost to produce a good
D) The profit earned by producers
Answer: A
Producer surplus is:
A) The area above the supply curve and below the price
B) The area below the demand curve and above the price
C) The total revenue minus variable costs
D) The total revenue minus fixed costs
Answer: A
Deadweight loss occurs when:
A) Markets are perfectly competitive
B) A market is in equilibrium
C) A market is not operating at its efficient quantity (e.g., due to taxes or price
controls)
D) Consumer surplus is maximized
Answer: C
In a perfectly competitive market, firms are:
A) Price makers
B) Price takers
C) Able to differentiate their products
D) Protected by high barriers to entry
Answer: B
Managers Exam () Questions and Verified
Answers,
The fundamental economic problem is:
A) Unemployment
B) Scarcity
C) Inflation
D) Market failure
Answer: B
The opportunity cost of a decision is:
A) The monetary cost of the choice made
B) The total value of all alternatives given up
C) The value of the next best alternative forgone
D) The cost of producing the good
Answer: C
A production possibilities frontier (PPF) bows outward because:
A) Resources are perfectly adaptable to producing both goods
B) Opportunity costs are constant
C) Resources are not perfectly adaptable to producing both goods
D) Technology improves over time
Answer: C
According to the law of demand, as the price of a good increases:
,A) Quantity demanded increases
B) Quantity demanded decreases
C) Supply increases
D) The demand curve shifts left
Answer: B
Which of the following will shift the demand curve to the right?
A) A decrease in the price of a substitute good
B) An increase in consumer income (for a normal good)
C) A decrease in the price of the good itself
D) An increase in the price of a complement good
Answer: B
If two goods are substitutes, a decrease in the price of one will cause:
A) The demand for the other to increase
B) The demand for the other to decrease
C) The supply for the other to increase
D) No change in the demand for the other
Answer: B
A price ceiling set below the equilibrium price will result in:
A) A surplus
B) A shortage
C) Equilibrium
D) An increase in supply
Answer: B
A price floor set above the equilibrium price will result in:
,A) A surplus
B) A shortage
C) An increase in demand
D) Equilibrium
Answer: A
If the cross-price elasticity of demand between two goods is negative, the goods
are:
A) Substitutes
B) Complements
C) Inferior goods
D) Normal goods
Answer: B
If demand is price inelastic, a price increase will:
A) Decrease total revenue
B) Increase total revenue
C) Leave total revenue unchanged
D) Reduce quantity demanded to zero
Answer: B
The income elasticity of demand for an inferior good is:
A) Positive
B) Negative
C) Zero
D) Greater than 1
Answer: B
Consumer surplus is defined as:
, A) The difference between what consumers are willing to pay and what they
actually pay
B) The total amount consumers pay for a good
C) The cost to produce a good
D) The profit earned by producers
Answer: A
Producer surplus is:
A) The area above the supply curve and below the price
B) The area below the demand curve and above the price
C) The total revenue minus variable costs
D) The total revenue minus fixed costs
Answer: A
Deadweight loss occurs when:
A) Markets are perfectly competitive
B) A market is in equilibrium
C) A market is not operating at its efficient quantity (e.g., due to taxes or price
controls)
D) Consumer surplus is maximized
Answer: C
In a perfectly competitive market, firms are:
A) Price makers
B) Price takers
C) Able to differentiate their products
D) Protected by high barriers to entry
Answer: B
