WGU C211 GLOBAL ECONOMICS WITH ALL ANSWERS
SupposecthatcthecUnitedcStatescimposesca
tariffconcavocadoscimportedcfromcMexico.
Whatcimpactcwillcthischaveconcthecpricecpaid
forcavocadoscbycUnitedcStatesccitizens?c-ccorrectcanswer-Thecpricecwillcincrease.
Whichcofcthecfollowingciscacconsequencecofca
countrycimposingcactariffconcimportedcgoods?c-ccorrectcanswer-
Thecdemandcforcforeigncproducedcgoods
decreases.
SupposecthatcthecUnitedcStatescimposesca
tariffconcsalt.cWhatcimpactcmightcthisctariff
haveconcthecpricecforcdomesticcconsumers?c-ccorrectcanswer-
Consumerscwillcpaycachighercprice.
Applyingcactariffctoccoconutscwillchavecthe
followingceffect:c-ccorrectcanswer-Increasecthecdomesticcpricecof
coconuts.
WhichcofcthecfollowingciscNOTcacrestrictioncto
trade?c-ccorrectcanswer-Freectradecareas.
Whatciscthecsignificantcdifferencecbetweencan
importcquotacandcactariff?c-ccorrectcanswer-Actariffcraisescrevenuecforcthe
governmentcandcancimportcquotaccreatescsurpluscfor
thosecwhocobtainclicensesctocimport.
Supposecthatcthecpricecofcacgoodcincreasesc(all
elsecheldcconstant).cWhichcofcthecfollowing
wouldchappencalongcwithcthecchangecincprice?c-ccorrectcanswer-
Consumercsurpluscwouldcdecrease.
SupposecthatcBobcgoesctocthecmarketcandcis
,willingctocpayc$500cforcacnewcchainsaw.cBobcis
ablectocfindcthecchainsawcforconlyc$400.cWhich
ofcthecfollowingcfollowscfromcBob's
circumstance?c-ccorrectcanswer-Hiscconsumercsurpluscisc$100.
Whichcstatementcisctruecofcconsumercsurplus?c-ccorrectcanswer-
Consumercsurpluscrepresentscvaluecto
buyerscincexcesscofcthecpricecpaidcforcthecproduct.
Whichcstatementcisctrue?c-ccorrectcanswer-
Totalcsurplusciscthecsumcofcconsumercand
producercsurpluscandciscgraphicallycrepresentedcascthe
areacbetweencthecsupplycandcdemandccurvescupctocthe
equilibriumcquantity.
SupposecthatcBobclivescincthecUnitedcStates,
butchascbeencworkingcincMexicocforctheclastc5cyears.cWhereciscthecvaluecofcBob'scpr
oduction
countedcduringctheclastc5cyears?c-ccorrectcanswer-U.S.cGNPcandcMexico'scGDP.
Whichcofcthecfollowingcstatementscdescribes
grosscdomesticcproductc(GDP)?c-ccorrectcanswer-
GDPciscthecmostcusedcmeasurecofca
country'sceconomiccwellbeing.
Whichcofcthecfollowingciscancinvestment
includedcincthecgrosscdomesticcproductc(GDP)
measure?c-ccorrectcanswer-Spendingconcnewcresidential
construction.
GrosscDomesticcProductc(GDP)cmeasures
whichcofcthecfollowing?c-ccorrectcanswer-Marketcvaluecofcfinalcgoodscandcservices
producedcwithincaccountrycincacgivencperiodcofctime.
WhichcitemciscNOTcpartcofcGDP?c-ccorrectcanswer-Purchasingcacusedchairdryer.
Whatcisctheckeycdistinctioncbetweencrealcand
nominalcGDP?c-ccorrectcanswer-RealcGDPcmeasurescproductioncnot
affectedcbycchangescincpricescwhilecnominalcGDP
measurescproductioncmeasuredcatccurrentcprices.
Whatciscthecchangecinctotalccostcequalctocincthe
marginalccostcequation?c-ccorrectcanswer-Marginalccostcmultipliedcbycchangecin
quantity.
Fixedccostscequal:c-ccorrectcanswer-Totalccostscminuscvariableccosts
Economiccprofitciscdistinctcfromcaccounting
profitcbecause:c-ccorrectcanswer-Economiccprofitcincorporatescbothcexplicit
andcimplicitccosts.
, Totalccostscinclude:c-ccorrectcanswer-Variableccostscpluscfixedccosts.
Marginalccostscconsider:c-ccorrectcanswer-Thecincreasecinctotalccostcarisingcfromcan
extracunitcofcproduction.
Whatcresponsecbestcdescribescthecrelationship
betweencmarginalccostscandctotalccosts?c-ccorrectcanswer-
Whenevercmarginalccostcisclesscthan
averagectotalccost,caveragectotalccostciscfalling.
Whichcstatementcisctruecaboutcproductivity?c-ccorrectcanswer-
Thecvaluecofcmarginalcproductcofclabor
equalscwagecincaccompetitivecfirm.
Acproductioncfunctioncexpressescthe
relationshipcbetween:c-ccorrectcanswer-Quantitycofcresourcecinputscand
product/servicecoutputs.
Opportunityccostscinclude:c-ccorrectcanswer-
Thecincomecthecentrepreneurccouldchave
earnedcworkingcforcancemployer.
Economistscandcdecisioncmakerscstudycand
thencmakecdecisionscorcjudgmentscbasedcon
(selectcbestcanswer):c-ccorrectcanswer-Marginalcanalysis.
Thecprimarycreasoncthatcthecmarginalccost
curvecdeclinescandcthencincreasescis:c-ccorrectcanswer-
Firmscexperiencecincreasingcmarginal
product,cthencdiminishingcmarginalcproduct.
Whichcofcthecfollowingcstatementscis
accurate?c-ccorrectcanswer-Marginalccostsceventuallycrisecwithcthe
quantitycofcoutput.
Considercthecfollowingcexample:cAcperfectly
competitivecfirmcfindscthatcatccurrent
productionclevelscmarginalccostciscgreater
thancmarginalcrevenue.cWhatcactioncshould
thiscfirmctakecincorderctocpursuecthe
maximizationcofcprofit?c-ccorrectcanswer-Decreasecthectargetcoutput.
Accompetitivecfirmcisccharacterizedcby:c-ccorrectcanswer-
Tradingcofcidenticalcproducts.
Competitivecfirmscexperiencecmarginal
revenuecthatcis:c-ccorrectcanswer-Equalctocprice.
Incthecshort-run,caccompetitivecfirmcwould
SupposecthatcthecUnitedcStatescimposesca
tariffconcavocadoscimportedcfromcMexico.
Whatcimpactcwillcthischaveconcthecpricecpaid
forcavocadoscbycUnitedcStatesccitizens?c-ccorrectcanswer-Thecpricecwillcincrease.
Whichcofcthecfollowingciscacconsequencecofca
countrycimposingcactariffconcimportedcgoods?c-ccorrectcanswer-
Thecdemandcforcforeigncproducedcgoods
decreases.
SupposecthatcthecUnitedcStatescimposesca
tariffconcsalt.cWhatcimpactcmightcthisctariff
haveconcthecpricecforcdomesticcconsumers?c-ccorrectcanswer-
Consumerscwillcpaycachighercprice.
Applyingcactariffctoccoconutscwillchavecthe
followingceffect:c-ccorrectcanswer-Increasecthecdomesticcpricecof
coconuts.
WhichcofcthecfollowingciscNOTcacrestrictioncto
trade?c-ccorrectcanswer-Freectradecareas.
Whatciscthecsignificantcdifferencecbetweencan
importcquotacandcactariff?c-ccorrectcanswer-Actariffcraisescrevenuecforcthe
governmentcandcancimportcquotaccreatescsurpluscfor
thosecwhocobtainclicensesctocimport.
Supposecthatcthecpricecofcacgoodcincreasesc(all
elsecheldcconstant).cWhichcofcthecfollowing
wouldchappencalongcwithcthecchangecincprice?c-ccorrectcanswer-
Consumercsurpluscwouldcdecrease.
SupposecthatcBobcgoesctocthecmarketcandcis
,willingctocpayc$500cforcacnewcchainsaw.cBobcis
ablectocfindcthecchainsawcforconlyc$400.cWhich
ofcthecfollowingcfollowscfromcBob's
circumstance?c-ccorrectcanswer-Hiscconsumercsurpluscisc$100.
Whichcstatementcisctruecofcconsumercsurplus?c-ccorrectcanswer-
Consumercsurpluscrepresentscvaluecto
buyerscincexcesscofcthecpricecpaidcforcthecproduct.
Whichcstatementcisctrue?c-ccorrectcanswer-
Totalcsurplusciscthecsumcofcconsumercand
producercsurpluscandciscgraphicallycrepresentedcascthe
areacbetweencthecsupplycandcdemandccurvescupctocthe
equilibriumcquantity.
SupposecthatcBobclivescincthecUnitedcStates,
butchascbeencworkingcincMexicocforctheclastc5cyears.cWhereciscthecvaluecofcBob'scpr
oduction
countedcduringctheclastc5cyears?c-ccorrectcanswer-U.S.cGNPcandcMexico'scGDP.
Whichcofcthecfollowingcstatementscdescribes
grosscdomesticcproductc(GDP)?c-ccorrectcanswer-
GDPciscthecmostcusedcmeasurecofca
country'sceconomiccwellbeing.
Whichcofcthecfollowingciscancinvestment
includedcincthecgrosscdomesticcproductc(GDP)
measure?c-ccorrectcanswer-Spendingconcnewcresidential
construction.
GrosscDomesticcProductc(GDP)cmeasures
whichcofcthecfollowing?c-ccorrectcanswer-Marketcvaluecofcfinalcgoodscandcservices
producedcwithincaccountrycincacgivencperiodcofctime.
WhichcitemciscNOTcpartcofcGDP?c-ccorrectcanswer-Purchasingcacusedchairdryer.
Whatcisctheckeycdistinctioncbetweencrealcand
nominalcGDP?c-ccorrectcanswer-RealcGDPcmeasurescproductioncnot
affectedcbycchangescincpricescwhilecnominalcGDP
measurescproductioncmeasuredcatccurrentcprices.
Whatciscthecchangecinctotalccostcequalctocincthe
marginalccostcequation?c-ccorrectcanswer-Marginalccostcmultipliedcbycchangecin
quantity.
Fixedccostscequal:c-ccorrectcanswer-Totalccostscminuscvariableccosts
Economiccprofitciscdistinctcfromcaccounting
profitcbecause:c-ccorrectcanswer-Economiccprofitcincorporatescbothcexplicit
andcimplicitccosts.
, Totalccostscinclude:c-ccorrectcanswer-Variableccostscpluscfixedccosts.
Marginalccostscconsider:c-ccorrectcanswer-Thecincreasecinctotalccostcarisingcfromcan
extracunitcofcproduction.
Whatcresponsecbestcdescribescthecrelationship
betweencmarginalccostscandctotalccosts?c-ccorrectcanswer-
Whenevercmarginalccostcisclesscthan
averagectotalccost,caveragectotalccostciscfalling.
Whichcstatementcisctruecaboutcproductivity?c-ccorrectcanswer-
Thecvaluecofcmarginalcproductcofclabor
equalscwagecincaccompetitivecfirm.
Acproductioncfunctioncexpressescthe
relationshipcbetween:c-ccorrectcanswer-Quantitycofcresourcecinputscand
product/servicecoutputs.
Opportunityccostscinclude:c-ccorrectcanswer-
Thecincomecthecentrepreneurccouldchave
earnedcworkingcforcancemployer.
Economistscandcdecisioncmakerscstudycand
thencmakecdecisionscorcjudgmentscbasedcon
(selectcbestcanswer):c-ccorrectcanswer-Marginalcanalysis.
Thecprimarycreasoncthatcthecmarginalccost
curvecdeclinescandcthencincreasescis:c-ccorrectcanswer-
Firmscexperiencecincreasingcmarginal
product,cthencdiminishingcmarginalcproduct.
Whichcofcthecfollowingcstatementscis
accurate?c-ccorrectcanswer-Marginalccostsceventuallycrisecwithcthe
quantitycofcoutput.
Considercthecfollowingcexample:cAcperfectly
competitivecfirmcfindscthatcatccurrent
productionclevelscmarginalccostciscgreater
thancmarginalcrevenue.cWhatcactioncshould
thiscfirmctakecincorderctocpursuecthe
maximizationcofcprofit?c-ccorrectcanswer-Decreasecthectargetcoutput.
Accompetitivecfirmcisccharacterizedcby:c-ccorrectcanswer-
Tradingcofcidenticalcproducts.
Competitivecfirmscexperiencecmarginal
revenuecthatcis:c-ccorrectcanswer-Equalctocprice.
Incthecshort-run,caccompetitivecfirmcwould
