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WGU C211 OBJECTIVE ASSESSMENT 2 NEWEST 2026
ACTUAL EXAM TEST BANK| C211 GLOBAL
ECONOMICS FOR MANAGERS OA EXAM WITH 200
REAL EXAM QUESTIONS AND CORRECT VERIFIED
ANSWERS/ ALREADY GRADED A+ (MOST RECENT!!)
What is the fundamental basis for trade among nations?
a. Shortages or surpluses in nations that do not trade
b. Absolute advantage
c. Comparative advantage
d. Misguided economic policies – Correct Answer - Comparative
advantage
A farmer produces oranges and sells them to Fresh Juice, which makes
orange juice. The oranges produced by the farmer are called
a. final goods.
b. inventory goods.
c. intermediate goods.
d. transitory goods. – Correct Answer - intermediate goods.
Which of the following policies can the Fed follow to increase the
money supply?
a. Reduce the quantity of funds available through the Term Auction
Facility
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b. Increase reserve requirements for banks
c. Sell government bonds
d. Reduce the interest rate on reserves – Correct Answer - Reduce the
interest rate on reserves
Which of the following increase when the Fed makes open market
purchases?
a. Currency and reserves
b. Reserves but not currency
c. Currency but not reserves
d. Neither currency nor reserves – Correct Answer - Currency and
reserves
Which of the following represents the firm's short-run condition for
shutting down?
a. Shut down if TR < FC
b. Shut down if TR < TC
c. Shut down if P < ATC
d. Shut down if TR < VC – Correct Answer - d. Shut down if TR < VC
Whenever a perfectly competitive firm chooses to change its level of
output, its marginal revenue
a. increases if MR < ATC and decreases if MR > ATC.
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b. always decreases.
c. does not change.
d. always increases. – Correct Answer - does not change.
The two types of imperfectly competitive markets are
a. monopolistic competition and cartels.
b. monopoly and monopolistic competition.
c. monopolistic competition and oligopoly.
d. monopoly and oligopoly. – Correct Answer - monopolistic
competition and oligopoly.
A market structure with only a few sellers, each offering similar or
identical products, is known as
a. oligopoly.
b. monopoly.
c. monopolistic competition.
d. perfect competition. – Correct Answer - oligopoly.
Which of the following conditions is characteristic of a monopolistically
competitive firm in both the short run and the long run?
a. P < MR
b. P = ATC
c. MC = ATC
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d. P > MC – Correct Answer - P > MC
The main supportive pillars of the informal institutions are _____.
a. normative and cognitive
b. cognitive and regulatory
c. regulatory, normative, and cognitive
d. regulatory and normative – Correct Answer - normative and cognitive
For which of the following types of economies would the factors of
production depend on the relative distribution of market forces versus
command forces?
a. Pure market economy
b. Strict laissez faire economy
c. Mixed economy
d. Command economy – Correct Answer - Mixed economy
Which economic system is the most common?
a. A mixed economy
b. A global economy
c. A pure command economy
d. A pure market economy – Correct Answer - A mixed economy
WGU C211 OBJECTIVE ASSESSMENT 2 NEWEST 2026
ACTUAL EXAM TEST BANK| C211 GLOBAL
ECONOMICS FOR MANAGERS OA EXAM WITH 200
REAL EXAM QUESTIONS AND CORRECT VERIFIED
ANSWERS/ ALREADY GRADED A+ (MOST RECENT!!)
What is the fundamental basis for trade among nations?
a. Shortages or surpluses in nations that do not trade
b. Absolute advantage
c. Comparative advantage
d. Misguided economic policies – Correct Answer - Comparative
advantage
A farmer produces oranges and sells them to Fresh Juice, which makes
orange juice. The oranges produced by the farmer are called
a. final goods.
b. inventory goods.
c. intermediate goods.
d. transitory goods. – Correct Answer - intermediate goods.
Which of the following policies can the Fed follow to increase the
money supply?
a. Reduce the quantity of funds available through the Term Auction
Facility
,2|Page
b. Increase reserve requirements for banks
c. Sell government bonds
d. Reduce the interest rate on reserves – Correct Answer - Reduce the
interest rate on reserves
Which of the following increase when the Fed makes open market
purchases?
a. Currency and reserves
b. Reserves but not currency
c. Currency but not reserves
d. Neither currency nor reserves – Correct Answer - Currency and
reserves
Which of the following represents the firm's short-run condition for
shutting down?
a. Shut down if TR < FC
b. Shut down if TR < TC
c. Shut down if P < ATC
d. Shut down if TR < VC – Correct Answer - d. Shut down if TR < VC
Whenever a perfectly competitive firm chooses to change its level of
output, its marginal revenue
a. increases if MR < ATC and decreases if MR > ATC.
,3|Page
b. always decreases.
c. does not change.
d. always increases. – Correct Answer - does not change.
The two types of imperfectly competitive markets are
a. monopolistic competition and cartels.
b. monopoly and monopolistic competition.
c. monopolistic competition and oligopoly.
d. monopoly and oligopoly. – Correct Answer - monopolistic
competition and oligopoly.
A market structure with only a few sellers, each offering similar or
identical products, is known as
a. oligopoly.
b. monopoly.
c. monopolistic competition.
d. perfect competition. – Correct Answer - oligopoly.
Which of the following conditions is characteristic of a monopolistically
competitive firm in both the short run and the long run?
a. P < MR
b. P = ATC
c. MC = ATC
, 4|Page
d. P > MC – Correct Answer - P > MC
The main supportive pillars of the informal institutions are _____.
a. normative and cognitive
b. cognitive and regulatory
c. regulatory, normative, and cognitive
d. regulatory and normative – Correct Answer - normative and cognitive
For which of the following types of economies would the factors of
production depend on the relative distribution of market forces versus
command forces?
a. Pure market economy
b. Strict laissez faire economy
c. Mixed economy
d. Command economy – Correct Answer - Mixed economy
Which economic system is the most common?
a. A mixed economy
b. A global economy
c. A pure command economy
d. A pure market economy – Correct Answer - A mixed economy
