WGU C211 Global Economics Exam Questions with Verified Answers
(Correct Update)
Question 1: Suppose that the United States imposes a tariff on avocados imported from
Mexico. What impact will this have on the price paid for avocados by United States citizens?
Answer: The price will increase.
Question 2: Which of the following is a consequence of a country imposing a tariff on imported
goods?
Answer: The demand for foreign produced goods decreases.
Question 3: Suppose that the United States imposes a tariff on salt. What impact might this
tariff have on the price for domestic consumers?
Answer: Consumers will pay a higher price.
Question 4: Applying a tariff to coconuts will have the following effect:
Answer: Increase the domestic price of coconuts.
Question 5: Which of the following is NOT a restriction to trade?
Answer: Free trade areas.
Question 6: What is the significant difference between an import quota and a tariff?
Answer: A tariff raises revenue for the government and an import quota creates surplus for those
who obtain licenses to import.
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, Question 7: Suppose that the price of a good increases (all else held constant). Which of the
following would happen along with the change in price?
Answer: Consumer surplus would decrease.
Question 8: Suppose that Bob goes to the market and is willing to pay $500 for a new chainsaw.
Bob is able to find the chainsaw for only $400. Which of the following follows from Bob's
circumstance?
Answer: His consumer surplus is $100.
Question 9: Which statement is true of consumer surplus?
Answer: Consumer surplus represents value to buyers in excess of the price paid for the product.
Question 10: Which statement is true?
Answer: Total surplus is the sum of consumer and producer surplus and is graphically represented
as the area between the supply and demand curves up to the equilibrium quantity.
Question 11: Suppose that Bob lives in the United States, but has been working in Mexico for
the last 5 years. Where is the value of Bob's production counted during the last 5 years?
Answer: U.S. GNP and Mexico's GDP.
Question 12: Which of the following statements describes gross domestic product (GDP)?
Answer: GDP is the most used measure of a country's economic wellbeing.
Page 2
(Correct Update)
Question 1: Suppose that the United States imposes a tariff on avocados imported from
Mexico. What impact will this have on the price paid for avocados by United States citizens?
Answer: The price will increase.
Question 2: Which of the following is a consequence of a country imposing a tariff on imported
goods?
Answer: The demand for foreign produced goods decreases.
Question 3: Suppose that the United States imposes a tariff on salt. What impact might this
tariff have on the price for domestic consumers?
Answer: Consumers will pay a higher price.
Question 4: Applying a tariff to coconuts will have the following effect:
Answer: Increase the domestic price of coconuts.
Question 5: Which of the following is NOT a restriction to trade?
Answer: Free trade areas.
Question 6: What is the significant difference between an import quota and a tariff?
Answer: A tariff raises revenue for the government and an import quota creates surplus for those
who obtain licenses to import.
Page 1
, Question 7: Suppose that the price of a good increases (all else held constant). Which of the
following would happen along with the change in price?
Answer: Consumer surplus would decrease.
Question 8: Suppose that Bob goes to the market and is willing to pay $500 for a new chainsaw.
Bob is able to find the chainsaw for only $400. Which of the following follows from Bob's
circumstance?
Answer: His consumer surplus is $100.
Question 9: Which statement is true of consumer surplus?
Answer: Consumer surplus represents value to buyers in excess of the price paid for the product.
Question 10: Which statement is true?
Answer: Total surplus is the sum of consumer and producer surplus and is graphically represented
as the area between the supply and demand curves up to the equilibrium quantity.
Question 11: Suppose that Bob lives in the United States, but has been working in Mexico for
the last 5 years. Where is the value of Bob's production counted during the last 5 years?
Answer: U.S. GNP and Mexico's GDP.
Question 12: Which of the following statements describes gross domestic product (GDP)?
Answer: GDP is the most used measure of a country's economic wellbeing.
Page 2
