WGU C211 Global Economics for Managers Practice Exam 70
Questions | Accurate & Verified Answers to Pass Actual Exam
1. Which concept describes the loss of potential gain from other alternatives
when one alternative is chosen?
A. Comparative Advantage
B. Absolute Advantage
C. Marginal Utility
D. Opportunity Cost
Answer: D
Explanation: Opportunity cost is the value of the next best alternative that is forgone when
a decision is made.
2. According to the Law of Demand, what happens when the price of a good
increases, all other things being equal?
A. The quantity demanded decreases
B. The quantity demanded increases
C. The demand curve shifts to the right
D. The supply curve shifts to the left
Answer: A
,Explanation: The Law of Demand states there is an inverse relationship between price and
quantity demanded.
3. Which of the following would cause a rightward shift in the supply curve?
A. An increase in the cost of raw materials
B. A decrease in the number of sellers
C. An improvement in production technology
D. An increase in consumer income
Answer: C
Explanation: Technological improvements reduce production costs, leading to an increase
in supply (rightward shift).
4. In a perfectly competitive market, firms are considered:
A. Price takers
B. Price makers
C. Oligopolists
D. Monopolists
Answer: A
Explanation: In perfect competition, many small firms sell identical products, so no single
firm can influence the market price.
,5. Which market structure is characterized by a few large firms that are
interdependent?
A. Monopoly
B. Oligopoly
C. Perfect Competition
D. Monopolistic Competition
Answer: B
Explanation: Oligopolies consist of a few dominant firms where the actions of one firm
significantly affect the others.
6. What is the primary measure used to track the total value of all final goods
and services produced within a country’s borders?
A. Gross National Product (GNP)
B. Consumer Price Index (CPI)
C. Gross Domestic Product (GDP)
D. Net National Income
Answer: C
Explanation: GDP measures the market value of all final goods and services produced
within a specific country over a period.
, 7. Which type of unemployment occurs when workers are between jobs or
entering the workforce?
A. Structural Unemployment
B. Cyclical Unemployment
C. Frictional Unemployment
D. Seasonal Unemployment
Answer: C
Explanation: Frictional unemployment is temporary and occurs as workers search for or
transition between jobs.
8. If a country can produce a good at a lower opportunity cost than another
country, it has a(n):
A. Absolute Advantage
B. Mercantilist Advantage
C. Trade Surplus
D. Comparative Advantage
Answer: D
Explanation: Comparative advantage is based on relative opportunity costs rather than
absolute productivity.
Questions | Accurate & Verified Answers to Pass Actual Exam
1. Which concept describes the loss of potential gain from other alternatives
when one alternative is chosen?
A. Comparative Advantage
B. Absolute Advantage
C. Marginal Utility
D. Opportunity Cost
Answer: D
Explanation: Opportunity cost is the value of the next best alternative that is forgone when
a decision is made.
2. According to the Law of Demand, what happens when the price of a good
increases, all other things being equal?
A. The quantity demanded decreases
B. The quantity demanded increases
C. The demand curve shifts to the right
D. The supply curve shifts to the left
Answer: A
,Explanation: The Law of Demand states there is an inverse relationship between price and
quantity demanded.
3. Which of the following would cause a rightward shift in the supply curve?
A. An increase in the cost of raw materials
B. A decrease in the number of sellers
C. An improvement in production technology
D. An increase in consumer income
Answer: C
Explanation: Technological improvements reduce production costs, leading to an increase
in supply (rightward shift).
4. In a perfectly competitive market, firms are considered:
A. Price takers
B. Price makers
C. Oligopolists
D. Monopolists
Answer: A
Explanation: In perfect competition, many small firms sell identical products, so no single
firm can influence the market price.
,5. Which market structure is characterized by a few large firms that are
interdependent?
A. Monopoly
B. Oligopoly
C. Perfect Competition
D. Monopolistic Competition
Answer: B
Explanation: Oligopolies consist of a few dominant firms where the actions of one firm
significantly affect the others.
6. What is the primary measure used to track the total value of all final goods
and services produced within a country’s borders?
A. Gross National Product (GNP)
B. Consumer Price Index (CPI)
C. Gross Domestic Product (GDP)
D. Net National Income
Answer: C
Explanation: GDP measures the market value of all final goods and services produced
within a specific country over a period.
, 7. Which type of unemployment occurs when workers are between jobs or
entering the workforce?
A. Structural Unemployment
B. Cyclical Unemployment
C. Frictional Unemployment
D. Seasonal Unemployment
Answer: C
Explanation: Frictional unemployment is temporary and occurs as workers search for or
transition between jobs.
8. If a country can produce a good at a lower opportunity cost than another
country, it has a(n):
A. Absolute Advantage
B. Mercantilist Advantage
C. Trade Surplus
D. Comparative Advantage
Answer: D
Explanation: Comparative advantage is based on relative opportunity costs rather than
absolute productivity.
