C211 WGU OA END OF COURSE UPDATED QUESTIONS
AND ANSWERS GRADED A+
✔✔In which type of political system do citizens elect representatives to govern the
country on their behalf? - ✔✔Democracy
✔✔Which legal system uses comprehensive lists of rules and written codes? - ✔✔Civil
Law
✔✔What are the legal privileges associated with the use of economic property to obtain
income and other benefits from its use? - ✔✔Property Rights
✔✔What is the purpose of having property rights and intellectual property rights? -
✔✔To legally protect the use of tangible and intangible property and allow its lawful
owner to derive income and other benefits from it
✔✔What are two popular types of economies? - ✔✔Mixed and Market
✔✔In addition to encouraging efficiency, why might a government intervene in a
market? - ✔✔To increase profits
✔✔What is the relationship between total and marginal cost? - ✔✔Marginal cost is the
change in the total cost divided by the change in quantity
✔✔A farmer sells wheat in a perfectly competitive market. Which action should the
farmer take to maximize profits? - ✔✔Produce the quantity where the price equals the
farmer's marginal cost
✔✔What is the economic profit of an competitive firm? - ✔✔The difference between
total revenue and total cost
✔✔Which condition applies when a competitive firm decides to temporarily shut down? -
✔✔Fixed costs are above variable costs
✔✔What is the producer's demand curve if the producer sells a differentiated product? -
✔✔Downward Sloping
✔✔Which statement describes a competitive firm's demand curve? - ✔✔It is more
elastic than a monopoly's demand curve
✔✔What is the point at which a monopoly maximizes profit? - ✔✔Where marginal cost
equals marginal revenue
, ✔✔What is a characteristic of monopolistic competition? - ✔✔Many firms and
differentiated products
✔✔What is a likely outcome of the standard prisoner's dilemma game? - ✔✔Both
prisoners confess
✔✔How does the prisoner's dilemma help in understanding company behavior in an
oligopoly? - ✔✔Companies lack strategic thinking
✔✔What do economists use to represent a consumer's preferences? - ✔✔Indifferent
curves
✔✔What can be assumed that the consumer will buy if it is observed that the
consumer's budget constraint has shifted inward? - ✔✔Fewer normal goods and more
inferior goods
✔✔What will happen to the market price and quantity in the short run if there is an
increase in market demand in a perfectly competitive market? - ✔✔The equilibrium
price will remain unchanged, and the equilibrium quantity will increase
✔✔What will happen to the output of a particular factory when there are negative
externalities? - ✔✔The quantity produced by the factory will be greater than the optimal
quantity
✔✔What happens to demand quantity for normal goods as percentage change in
income increases? - ✔✔Demand increases
✔✔What do the positive or negative numbers of cross-price elasticity of demand
represent? - ✔✔Substitutes or complements
✔✔What is one way the Federal Reserve influences the reserve ratio? - ✔✔By altering
reserve requirements
✔✔Which fiscal policy would be most effective at raising consumer spending and
expanding aggregate demand? - ✔✔Lowering target interest rates
✔✔What is the effect of an increase in the money supply in the short run? - ✔✔Interest
rates decrease and aggregate demand for goods and services increase
✔✔How is consumer surplus represented on a graph? - ✔✔The area below the demand
curve and above the price
AND ANSWERS GRADED A+
✔✔In which type of political system do citizens elect representatives to govern the
country on their behalf? - ✔✔Democracy
✔✔Which legal system uses comprehensive lists of rules and written codes? - ✔✔Civil
Law
✔✔What are the legal privileges associated with the use of economic property to obtain
income and other benefits from its use? - ✔✔Property Rights
✔✔What is the purpose of having property rights and intellectual property rights? -
✔✔To legally protect the use of tangible and intangible property and allow its lawful
owner to derive income and other benefits from it
✔✔What are two popular types of economies? - ✔✔Mixed and Market
✔✔In addition to encouraging efficiency, why might a government intervene in a
market? - ✔✔To increase profits
✔✔What is the relationship between total and marginal cost? - ✔✔Marginal cost is the
change in the total cost divided by the change in quantity
✔✔A farmer sells wheat in a perfectly competitive market. Which action should the
farmer take to maximize profits? - ✔✔Produce the quantity where the price equals the
farmer's marginal cost
✔✔What is the economic profit of an competitive firm? - ✔✔The difference between
total revenue and total cost
✔✔Which condition applies when a competitive firm decides to temporarily shut down? -
✔✔Fixed costs are above variable costs
✔✔What is the producer's demand curve if the producer sells a differentiated product? -
✔✔Downward Sloping
✔✔Which statement describes a competitive firm's demand curve? - ✔✔It is more
elastic than a monopoly's demand curve
✔✔What is the point at which a monopoly maximizes profit? - ✔✔Where marginal cost
equals marginal revenue
, ✔✔What is a characteristic of monopolistic competition? - ✔✔Many firms and
differentiated products
✔✔What is a likely outcome of the standard prisoner's dilemma game? - ✔✔Both
prisoners confess
✔✔How does the prisoner's dilemma help in understanding company behavior in an
oligopoly? - ✔✔Companies lack strategic thinking
✔✔What do economists use to represent a consumer's preferences? - ✔✔Indifferent
curves
✔✔What can be assumed that the consumer will buy if it is observed that the
consumer's budget constraint has shifted inward? - ✔✔Fewer normal goods and more
inferior goods
✔✔What will happen to the market price and quantity in the short run if there is an
increase in market demand in a perfectly competitive market? - ✔✔The equilibrium
price will remain unchanged, and the equilibrium quantity will increase
✔✔What will happen to the output of a particular factory when there are negative
externalities? - ✔✔The quantity produced by the factory will be greater than the optimal
quantity
✔✔What happens to demand quantity for normal goods as percentage change in
income increases? - ✔✔Demand increases
✔✔What do the positive or negative numbers of cross-price elasticity of demand
represent? - ✔✔Substitutes or complements
✔✔What is one way the Federal Reserve influences the reserve ratio? - ✔✔By altering
reserve requirements
✔✔Which fiscal policy would be most effective at raising consumer spending and
expanding aggregate demand? - ✔✔Lowering target interest rates
✔✔What is the effect of an increase in the money supply in the short run? - ✔✔Interest
rates decrease and aggregate demand for goods and services increase
✔✔How is consumer surplus represented on a graph? - ✔✔The area below the demand
curve and above the price
