WGU C211 GLOBAL ECONOMICS FOR
MANAGERS 2026 COMPREHENSIVE EXAM
STUDY GUIDE PRACTICE QUESTIONS AND
CORRECT ANSWERS OBJECTIVE
ASSESSMENT OA PREP GRADE A+
3 types of elasticity, their equations, purpose and outcomes - CORRECT
ANSWER -(1) Price elasticity of demand - % chg in Q D / % chg in P
(2) Income elasticity - % chg in Q D / % chg in income
(3) Cross-price elasticity - % chg in Q D Good 1/% chg in Good #2 P
In the net, how are price (P) and quantity (Q) changed by a simultaneous
increase in demand and supply? - CORRECT ANSWER -Price increases and
quantity is ambiguous. (Dependent upon how large of a shift in
supply/demand)
In the net, how are price (P) and quantity (Q) changed by a simultaneous
increase in demand and decrease in supply? - CORRECT ANSWER -Price
increases and quantity is ambiguous. (Dependent upon how large of a shift
in supply/demand)
In the net, how are price (P) and quantity (Q) changed by a simultaneous
decrease in demand and supply? - CORRECT ANSWER -Price is ambiguous,
quantity decreases.
,In the net, how are price (P) and quantity (Q) changed by a simultaneous
decrease in demand and increase in supply? - CORRECT ANSWER -Price
decreases, quantity ambiguous.
Tariff. - CORRECT ANSWER -Tax on goods produced abroad and sold
domestically(tax on imported goods). A method used to restrict
international trade.
Dead weight loss. - CORRECT ANSWER -The fall in total surplus that results
from a market distortion, such as a tax (new equilibrium price that is
settled for the transaction will be higher and therefore some burden of this
will be passed on to the consumer)
How are tariff's and dead weight loss related? Explain. - CORRECT ANSWER
-A tariff causes a deadweight loss because a tariff is a type of tax. Like most
taxes, it distorts incentives and pushes the allocation of scarce resources
away from the optimum. (Oversupply and under demand)
Two primary categories of trade barriers - CORRECT ANSWER -Tariffs and
Non-Tariff
If an import tariff is imposed on coconuts that are imported into the U.S.,
how will this impact the price of coconuts for U.S. consumers? - CORRECT
ANSWER -Increase the price.
Why might a government be interested in imposing an import tariff on a
good? What benefit would the government derive primarily? - CORRECT
ANSWER -The tariff will reduce the amount of importans, increase the
, amount of exports. The primary benefit is that it raises revenue for the
government.
How would imposing an import tariff on cigars impact the domestic
production of cigars? - CORRECT ANSWER -Quantity increases for exporting
at world price.
If an import tariff on coconuts was removed in the U.S., how would this
impact the demand for coconuts by U.S. consumers? - CORRECT ANSWER -
The demand would increase.
What would happen to the overall domestic demand for a good if an import
tariff were imposed on that good? - CORRECT ANSWER -It would increase.
How does a tariff generally impact the following entities: consumers,
producers, government? Compare the effects between the entities -
CORRECT ANSWER -Domestic sellers are better off, and domestic buyers
are worse off. In addition, the government raises revenue.
Consumer surplus - CORRECT ANSWER -The amount a buyer is willing to
pay for a good minus the amount the buyer actually pays for it
Who receives consumer surplus? - CORRECT ANSWER -The buyer.
In relation to the demand curve and price, how is consumer surplus
measured? - CORRECT ANSWER -The area below the demand curve and
above the price measures the consumer surplus in a market.
MANAGERS 2026 COMPREHENSIVE EXAM
STUDY GUIDE PRACTICE QUESTIONS AND
CORRECT ANSWERS OBJECTIVE
ASSESSMENT OA PREP GRADE A+
3 types of elasticity, their equations, purpose and outcomes - CORRECT
ANSWER -(1) Price elasticity of demand - % chg in Q D / % chg in P
(2) Income elasticity - % chg in Q D / % chg in income
(3) Cross-price elasticity - % chg in Q D Good 1/% chg in Good #2 P
In the net, how are price (P) and quantity (Q) changed by a simultaneous
increase in demand and supply? - CORRECT ANSWER -Price increases and
quantity is ambiguous. (Dependent upon how large of a shift in
supply/demand)
In the net, how are price (P) and quantity (Q) changed by a simultaneous
increase in demand and decrease in supply? - CORRECT ANSWER -Price
increases and quantity is ambiguous. (Dependent upon how large of a shift
in supply/demand)
In the net, how are price (P) and quantity (Q) changed by a simultaneous
decrease in demand and supply? - CORRECT ANSWER -Price is ambiguous,
quantity decreases.
,In the net, how are price (P) and quantity (Q) changed by a simultaneous
decrease in demand and increase in supply? - CORRECT ANSWER -Price
decreases, quantity ambiguous.
Tariff. - CORRECT ANSWER -Tax on goods produced abroad and sold
domestically(tax on imported goods). A method used to restrict
international trade.
Dead weight loss. - CORRECT ANSWER -The fall in total surplus that results
from a market distortion, such as a tax (new equilibrium price that is
settled for the transaction will be higher and therefore some burden of this
will be passed on to the consumer)
How are tariff's and dead weight loss related? Explain. - CORRECT ANSWER
-A tariff causes a deadweight loss because a tariff is a type of tax. Like most
taxes, it distorts incentives and pushes the allocation of scarce resources
away from the optimum. (Oversupply and under demand)
Two primary categories of trade barriers - CORRECT ANSWER -Tariffs and
Non-Tariff
If an import tariff is imposed on coconuts that are imported into the U.S.,
how will this impact the price of coconuts for U.S. consumers? - CORRECT
ANSWER -Increase the price.
Why might a government be interested in imposing an import tariff on a
good? What benefit would the government derive primarily? - CORRECT
ANSWER -The tariff will reduce the amount of importans, increase the
, amount of exports. The primary benefit is that it raises revenue for the
government.
How would imposing an import tariff on cigars impact the domestic
production of cigars? - CORRECT ANSWER -Quantity increases for exporting
at world price.
If an import tariff on coconuts was removed in the U.S., how would this
impact the demand for coconuts by U.S. consumers? - CORRECT ANSWER -
The demand would increase.
What would happen to the overall domestic demand for a good if an import
tariff were imposed on that good? - CORRECT ANSWER -It would increase.
How does a tariff generally impact the following entities: consumers,
producers, government? Compare the effects between the entities -
CORRECT ANSWER -Domestic sellers are better off, and domestic buyers
are worse off. In addition, the government raises revenue.
Consumer surplus - CORRECT ANSWER -The amount a buyer is willing to
pay for a good minus the amount the buyer actually pays for it
Who receives consumer surplus? - CORRECT ANSWER -The buyer.
In relation to the demand curve and price, how is consumer surplus
measured? - CORRECT ANSWER -The area below the demand curve and
above the price measures the consumer surplus in a market.
