WGU C211 OA EXAM SCRIPT 2025/2026 QUESTIONS WITH
ANSWERS GUARANTEE A+
✔✔political system that affects global business with hostility towards business, higher
political risk such as nationalism - ✔✔totalitarianism
✔✔political system where citizens elect representatives to govern the country on their
behalf - ✔✔democracy
✔✔political system where one person or party exercises absolute political control over
the population - ✔✔totalitarianism
✔✔law that uses comprehensive statutes and codes as a primary means to form legal
judgements - ✔✔civil
✔✔law that is shaped by precedents and traditions from previous judicial decisions -
✔✔common
✔✔law that is based on religious teachings - ✔✔theocratic
✔✔less confrontational, shorter, less specific form of law - ✔✔civil
✔✔common law is ______ flexible than civil law - ✔✔more
✔✔the legal right to use an economic resource and to derive income and benefits from
it - ✔✔property right
✔✔legal rights awarded by government authorities to investors of new products or
processes who are given monopoly rights to derive income from inventions - ✔✔patent
✔✔exclusive legal rights of authors and publishers to publish and disseminate their
work - ✔✔copyright
✔✔exclusive legal rights of firms to use specific names, brands and designs to
differentiate their products - ✔✔trademark
✔✔characterized by the invisible hand of market forces where the government takes a
hands off approach - ✔✔market
✔✔factors of production should be government owned or state owned and all supply,
demand and pricing are planned by the government - ✔✔command
, ✔✔the economic system of most countries - ✔✔mixed economy
✔✔a curve that represents a consumers preferences - ✔✔indifference curve
✔✔________ indifference curves are preferred to ______ ones - ✔✔higher, lower
✔✔indifference curves are bowed ______ - ✔✔inward
✔✔the rate at which a consumer is willing to substitute one good for another -
✔✔marginal rate of substitution
✔✔the limit on consumption bundles that a consumer can afford - ✔✔budget constraint
✔✔a piece of analysis that shows the combination of goods the consumer can afford
given their income and price of goods - ✔✔budget constraint
✔✔an increase in income will shift the budget constraint ________ - ✔✔outward
✔✔the slope of the indifference curve equals the slope of the - ✔✔budget constraint
✔✔the consumer chooses consumption of the two goods so that the marginal rate of
substitution equals the - ✔✔relative price
✔✔the increase in total cost that results from adding an additional unit of production -
✔✔marginal cost
✔✔formula to calculate marginal cost - ✔✔change in total cost / change in quantity
✔✔a firm will produce the quantity where MR = MC as long as ________ - ✔✔price >
AVC
✔✔when price falls below the AVC, what will a firm do? - ✔✔shut down temporarily
✔✔someone who has to take the market price of a product and accept it as their own
price - ✔✔price taker
✔✔the demand curve for a perfectly competitive firm is - ✔✔horizontal
✔✔the demand curve for a monopolistic market is - ✔✔downward sloping
✔✔where do firms with market power determine the quantity of product/service they will
produce? - ✔✔quantity where MR = MC, quantity where P = MC
ANSWERS GUARANTEE A+
✔✔political system that affects global business with hostility towards business, higher
political risk such as nationalism - ✔✔totalitarianism
✔✔political system where citizens elect representatives to govern the country on their
behalf - ✔✔democracy
✔✔political system where one person or party exercises absolute political control over
the population - ✔✔totalitarianism
✔✔law that uses comprehensive statutes and codes as a primary means to form legal
judgements - ✔✔civil
✔✔law that is shaped by precedents and traditions from previous judicial decisions -
✔✔common
✔✔law that is based on religious teachings - ✔✔theocratic
✔✔less confrontational, shorter, less specific form of law - ✔✔civil
✔✔common law is ______ flexible than civil law - ✔✔more
✔✔the legal right to use an economic resource and to derive income and benefits from
it - ✔✔property right
✔✔legal rights awarded by government authorities to investors of new products or
processes who are given monopoly rights to derive income from inventions - ✔✔patent
✔✔exclusive legal rights of authors and publishers to publish and disseminate their
work - ✔✔copyright
✔✔exclusive legal rights of firms to use specific names, brands and designs to
differentiate their products - ✔✔trademark
✔✔characterized by the invisible hand of market forces where the government takes a
hands off approach - ✔✔market
✔✔factors of production should be government owned or state owned and all supply,
demand and pricing are planned by the government - ✔✔command
, ✔✔the economic system of most countries - ✔✔mixed economy
✔✔a curve that represents a consumers preferences - ✔✔indifference curve
✔✔________ indifference curves are preferred to ______ ones - ✔✔higher, lower
✔✔indifference curves are bowed ______ - ✔✔inward
✔✔the rate at which a consumer is willing to substitute one good for another -
✔✔marginal rate of substitution
✔✔the limit on consumption bundles that a consumer can afford - ✔✔budget constraint
✔✔a piece of analysis that shows the combination of goods the consumer can afford
given their income and price of goods - ✔✔budget constraint
✔✔an increase in income will shift the budget constraint ________ - ✔✔outward
✔✔the slope of the indifference curve equals the slope of the - ✔✔budget constraint
✔✔the consumer chooses consumption of the two goods so that the marginal rate of
substitution equals the - ✔✔relative price
✔✔the increase in total cost that results from adding an additional unit of production -
✔✔marginal cost
✔✔formula to calculate marginal cost - ✔✔change in total cost / change in quantity
✔✔a firm will produce the quantity where MR = MC as long as ________ - ✔✔price >
AVC
✔✔when price falls below the AVC, what will a firm do? - ✔✔shut down temporarily
✔✔someone who has to take the market price of a product and accept it as their own
price - ✔✔price taker
✔✔the demand curve for a perfectly competitive firm is - ✔✔horizontal
✔✔the demand curve for a monopolistic market is - ✔✔downward sloping
✔✔where do firms with market power determine the quantity of product/service they will
produce? - ✔✔quantity where MR = MC, quantity where P = MC
