WGU C211 Global Economics Actual Exam/ WGU C211 Exam
Questions with Correct Answers/ Latest 2024-2025
Which of the following is a consequence of a country imposing a tariff on imported goods? - ANSWER -
The demand for foreign produced goodsn decreases.
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.
Which of the following is NOT a restriction to trade? - ANSWER - Free trade areas.
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.
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.
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.
Which statement is true of consumer surplus? - ANSWER - Consumer surplus represents value to
buyers in excess of the price paid for the product.
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.
pg. 1
,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.
Which of the following statements describes gross domestic product (GDP)? - ANSWER - GDP is the most
used measure of a country's economic wellbeing.
Which of the following is an investment included in the gross domestic product (GDP) measure? -
ANSWER - Spending on new residential construction.
Gross Domestic Product (GDP) measures which of the following? - ANSWER - Market value of final goods
and services produced within a country in a given period of time.
Which item is NOT part of GDP? - ANSWER - Purchasing a used hairdryer.
What is the key distinction between real and nominal GDP? - ANSWER - Real GDP measures production
not affected by changes in prices while nominal GDP measures production measured at current prices.
What is the change in total cost equal to in the marginal cost equation? - ANSWER - Marginal cost
multiplied by change in quantity.
Fixed costs equal: - ANSWER - Total costs minus variable costs
Economic profit is distinct from accounting profit because: - ANSWER - Economic profit incorporates
both explicit and implicit costs.
Total costs include: - ANSWER - Variable costs plus fixed costs.
Marginal costs consider: - ANSWER - The increase in total cost arising from an
extra unit of production.
What response best describes the relationship between marginal costs and total costs? - ANSWER -
Whenever marginal cost is less than average total cost, average total cost is falling.
pg. 2
, Which statement is true about productivity? - ANSWER - The value of marginal product of labor
equals wage in a competitive firm.
A production function expresses the relationship between: - ANSWER - Quantity of resource inputs and
product/service outputs.
Opportunity costs include: - ANSWER - The income the entrepreneur could have earned working for an
employer.
Economists and decision makers study and then make decisions or judgments based on
(select best answer): - ANSWER - Marginal analysis.
The primary reason that the marginal cost curve declines and then increases is: - ANSWER - Firms
experience increasing marginal product, then diminishing marginal product.
Which of the following statements is accurate? - ANSWER - Marginal costs eventually rise with the
quantity of output.
Consider the following example: A perfectly competitive firm finds that at current production levels
marginal cost is greater than marginal revenue. What action should this firm take in order to pursue the
maximization of profit? - ANSWER - Decrease the target output.
A competitive firm is characterized by: - ANSWER - Trading of identical products.
Competitive firms experience marginal revenue that is: - ANSWER - Equal to price.
In the short-run, a competitive firm would continue to produce under the following circumstance: -
ANSWER - Total revenue exceeds total variable costs.
pg. 3
Questions with Correct Answers/ Latest 2024-2025
Which of the following is a consequence of a country imposing a tariff on imported goods? - ANSWER -
The demand for foreign produced goodsn decreases.
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.
Which of the following is NOT a restriction to trade? - ANSWER - Free trade areas.
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.
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.
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.
Which statement is true of consumer surplus? - ANSWER - Consumer surplus represents value to
buyers in excess of the price paid for the product.
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.
pg. 1
,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.
Which of the following statements describes gross domestic product (GDP)? - ANSWER - GDP is the most
used measure of a country's economic wellbeing.
Which of the following is an investment included in the gross domestic product (GDP) measure? -
ANSWER - Spending on new residential construction.
Gross Domestic Product (GDP) measures which of the following? - ANSWER - Market value of final goods
and services produced within a country in a given period of time.
Which item is NOT part of GDP? - ANSWER - Purchasing a used hairdryer.
What is the key distinction between real and nominal GDP? - ANSWER - Real GDP measures production
not affected by changes in prices while nominal GDP measures production measured at current prices.
What is the change in total cost equal to in the marginal cost equation? - ANSWER - Marginal cost
multiplied by change in quantity.
Fixed costs equal: - ANSWER - Total costs minus variable costs
Economic profit is distinct from accounting profit because: - ANSWER - Economic profit incorporates
both explicit and implicit costs.
Total costs include: - ANSWER - Variable costs plus fixed costs.
Marginal costs consider: - ANSWER - The increase in total cost arising from an
extra unit of production.
What response best describes the relationship between marginal costs and total costs? - ANSWER -
Whenever marginal cost is less than average total cost, average total cost is falling.
pg. 2
, Which statement is true about productivity? - ANSWER - The value of marginal product of labor
equals wage in a competitive firm.
A production function expresses the relationship between: - ANSWER - Quantity of resource inputs and
product/service outputs.
Opportunity costs include: - ANSWER - The income the entrepreneur could have earned working for an
employer.
Economists and decision makers study and then make decisions or judgments based on
(select best answer): - ANSWER - Marginal analysis.
The primary reason that the marginal cost curve declines and then increases is: - ANSWER - Firms
experience increasing marginal product, then diminishing marginal product.
Which of the following statements is accurate? - ANSWER - Marginal costs eventually rise with the
quantity of output.
Consider the following example: A perfectly competitive firm finds that at current production levels
marginal cost is greater than marginal revenue. What action should this firm take in order to pursue the
maximization of profit? - ANSWER - Decrease the target output.
A competitive firm is characterized by: - ANSWER - Trading of identical products.
Competitive firms experience marginal revenue that is: - ANSWER - Equal to price.
In the short-run, a competitive firm would continue to produce under the following circumstance: -
ANSWER - Total revenue exceeds total variable costs.
pg. 3
