WGU C211 - Global Economics for
Managers (Latest Update )
Questions with Correct Answers {Grade A}
100% Verified
Indifference curve - correct answer A curve that shows consumption bundles that give
the consumer the same level of satisfaction (i.e. combinations of pizza and Pepsi with
which the consumer is equally satisfied.)
Four properties of an indifference curve - correct answer (1) Higher indifference
curves are preferred to lower ones. People usually prefer to consume more goods
rather than less.
(2) Indifference curves are downward sloping. The slope of an indifference curve
reflects the rate at which the consumer is willing to substitute one good for the other.
(3) Indifference curves do not cross.
(4) Indifference curves are bowed inward. The slope of an indifference curve is the
marginal rate of substitution—the rate at which the consumer is willing to trade off one
good for the other.
,Marginal rate of substitution. - correct answer The rate at which the consumer is
willing to trade off one good for the other (i.e. how much Pepsi the consumer requires
to be compensated for a one-unit reduction in pizza consumption)
Budget constraint - correct answer The consumption bundles that the consumer can
afford.
How might a budget constraint be impacted by an increase in income? - correct
answer Additional bundles could be consumed with an increase in income.
Graphical elements needed to determine a consumer's optimal point of consumption -
correct answer Indifference curve and budget constraint.
How is a consumer's optimal point of consumption determined precisely? What is the
condition that must be met? - correct answer The point at which this indifference curve
and the budget constraint touch (the best combination of pizza and Pepsi available to
the consumer.) The marginal rate of substitution equals the relative price of the two
goods.
, Marginal cost - correct answer The increase in total cost that arises from an extra unit
of production
How is marginal cost related to total cost? - correct answer The portion of total cost
resulting from an extra unit of production.
Formula to calculate marginal cost - correct answer Change in total cost divided by
change in quantity
If Dave's company has a total cost of $100 when quantity output is 5, and a total cost of
$115 when quantity output is 6, what is the marginal cost of producing the 6th unit? -
correct answer $15
Total cost is made of two types of costs, what are they? - correct answer Fixed and
Variable.
Managers (Latest Update )
Questions with Correct Answers {Grade A}
100% Verified
Indifference curve - correct answer A curve that shows consumption bundles that give
the consumer the same level of satisfaction (i.e. combinations of pizza and Pepsi with
which the consumer is equally satisfied.)
Four properties of an indifference curve - correct answer (1) Higher indifference
curves are preferred to lower ones. People usually prefer to consume more goods
rather than less.
(2) Indifference curves are downward sloping. The slope of an indifference curve
reflects the rate at which the consumer is willing to substitute one good for the other.
(3) Indifference curves do not cross.
(4) Indifference curves are bowed inward. The slope of an indifference curve is the
marginal rate of substitution—the rate at which the consumer is willing to trade off one
good for the other.
,Marginal rate of substitution. - correct answer The rate at which the consumer is
willing to trade off one good for the other (i.e. how much Pepsi the consumer requires
to be compensated for a one-unit reduction in pizza consumption)
Budget constraint - correct answer The consumption bundles that the consumer can
afford.
How might a budget constraint be impacted by an increase in income? - correct
answer Additional bundles could be consumed with an increase in income.
Graphical elements needed to determine a consumer's optimal point of consumption -
correct answer Indifference curve and budget constraint.
How is a consumer's optimal point of consumption determined precisely? What is the
condition that must be met? - correct answer The point at which this indifference curve
and the budget constraint touch (the best combination of pizza and Pepsi available to
the consumer.) The marginal rate of substitution equals the relative price of the two
goods.
, Marginal cost - correct answer The increase in total cost that arises from an extra unit
of production
How is marginal cost related to total cost? - correct answer The portion of total cost
resulting from an extra unit of production.
Formula to calculate marginal cost - correct answer Change in total cost divided by
change in quantity
If Dave's company has a total cost of $100 when quantity output is 5, and a total cost of
$115 when quantity output is 6, what is the marginal cost of producing the 6th unit? -
correct answer $15
Total cost is made of two types of costs, what are they? - correct answer Fixed and
Variable.
