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WGU C211 Objective Assessment Final Exam 2025 – Business of
IT: Applications Study Guide, Practice Questions, and Answers
Prepare for your WGU C211 Objective Assessment Final Exam 2025 with this comprehensive
study guide, real exam-style practice questions, and key business application concepts.
Designed to help WGU students master Business of IT, strategy, and process management
efficiently.
• WGU C211 Objective Assessment
• WGU C211 Final Exam 2025
• Business of IT Applications WGU
• WGU C211 study guide
When marginal cost is less than average total cost,
a. average total cost is falling.
b. marginal cost must be falling.
c. average total cost is rising.
d. average variable cost must be falling. - ANSWER-average total cost is falling.
The most likely explanation for economies of scale is
a. coordination problems.
b. increasing marginal cost.
c. decreasing marginal cost.
d. specialization of labor. - ANSWER-specialization of labor.
If a firm uses labor to produce output, the firm's production function depicts the relationship between
a. marginal product and marginal cost.
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b. the maximum quantity that the firm can produce as it adds more capital to a fixed quantity of labor.
c. fixed inputs and variable inputs in the short run.
d. the number of workers and the quantity of output. - ANSWER-the number of workers and the quantity
of output.
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 - ANSWER-d. Shut down if TR < VC
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 - ANSWER-Currency and reserves
The federal funds rate is the
a. percentage of deposits that banks must hold as reserves.
b. interest rate at which the Federal Reserve makes short-term loans to banks.
c. percentage of face value that the Federal Reserve is willing to pay for Treasury Securities.
d. interest rate at which banks lend reserves to each other overnight. - ANSWER-interest rate at which
banks lend reserves to each other overnight.
If the Fed raised the reserve requirement, the demand for reserves would
a. decrease, so the federal funds rate would fall.
b. increase, so the federal funds rate would fall.
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c. decrease, so the federal funds rate would rise.
d. increase, so the federal funds rate would rise. - ANSWER-increase, so the federal funds rate would
rise.
The Federal Reserve
a. is the central bank of the United States.
b. is only responsible for controlling the money supply.
c. was created in 1896.
d. is part of the executive branch of government. - ANSWER-is the central bank of the United States.
If marginal cost is rising,
a. marginal product must be falling.
b. marginal product must be rising.
c. average variable cost must be falling.
d. average fixed cost must be rising. - ANSWER-marginal product must be falling.
If there is an increase in market demand in a perfectly competitive market, then in the short run
a. profits will rise.
b. there will be no change in the demand curves faced by individual firms in the market.
c. the demand curves facing firms will become more elastic.
d. the demand curves facing firms will shift downward. - ANSWER-profits will rise.
A competitive market is in long-run equilibrium. If demand decreases, we can be certain that price will
a. fall in the short run. All firms will shut down, and some of them will exit the industry. Price will then
rise to reach the new long-run equilibrium.
b. fall in the short run. All, some, or no firms will shut down, and some of them will exit the industry.
Price will then rise to reach the new long-run equilibrium.
c. not fall in the short run because firms will exit to maintain the price.
d. fall in the short run. No firms will shut down, but some of them will exit the industry. Price will then
rise to reach the new long-run equilibrium. - ANSWER-fall in the short run. All, some, or no firms will
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shut down, and some of them will exit the industry. Price will then rise to reach the new long-run
equilibrium.
When firms are said to be price takers, it implies that if a firm raises its price,
a. competitors will also raise their prices.
b. buyers will pay the higher price in the short run.
c. firms in the industry will exercise market power.
d. buyers will go elsewhere. - ANSWER-buyers will go elsewhere.
If a firm in a perfectly competitive market triples the quantity of output sold, then total revenue will
a. more than triple.
b. less than triple.
c. exactly triple.
d. be reduced by one third. - ANSWER-exactly triple.
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.
b. always decreases.
c. does not change.
d. always increases. - ANSWER-does not change.
Farmer McDonald sells wheat to a broker in Kansas City, Missouri. Because the market for wheat is
generally considered to be competitive, Mr. McDonald maximizes his profit by choosing
a. to produce the quantity at which average fixed cost is minimized.
b. the quantity at which market price is equal to Mr. McDonald's marginal cost of production.
c. to produce the quantity at which average variable cost is minimized.
d. the quantity at which market price exceeds Mr. McDonald's marginal cost of production by the
greatest amount. - ANSWER-the quantity at which market price is equal to Mr. McDonald's marginal cost
of production.
WGU C211 Objective Assessment Final Exam 2025 – Business of
IT: Applications Study Guide, Practice Questions, and Answers
Prepare for your WGU C211 Objective Assessment Final Exam 2025 with this comprehensive
study guide, real exam-style practice questions, and key business application concepts.
Designed to help WGU students master Business of IT, strategy, and process management
efficiently.
• WGU C211 Objective Assessment
• WGU C211 Final Exam 2025
• Business of IT Applications WGU
• WGU C211 study guide
When marginal cost is less than average total cost,
a. average total cost is falling.
b. marginal cost must be falling.
c. average total cost is rising.
d. average variable cost must be falling. - ANSWER-average total cost is falling.
The most likely explanation for economies of scale is
a. coordination problems.
b. increasing marginal cost.
c. decreasing marginal cost.
d. specialization of labor. - ANSWER-specialization of labor.
If a firm uses labor to produce output, the firm's production function depicts the relationship between
a. marginal product and marginal cost.
,2|Page
b. the maximum quantity that the firm can produce as it adds more capital to a fixed quantity of labor.
c. fixed inputs and variable inputs in the short run.
d. the number of workers and the quantity of output. - ANSWER-the number of workers and the quantity
of output.
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 - ANSWER-d. Shut down if TR < VC
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 - ANSWER-Currency and reserves
The federal funds rate is the
a. percentage of deposits that banks must hold as reserves.
b. interest rate at which the Federal Reserve makes short-term loans to banks.
c. percentage of face value that the Federal Reserve is willing to pay for Treasury Securities.
d. interest rate at which banks lend reserves to each other overnight. - ANSWER-interest rate at which
banks lend reserves to each other overnight.
If the Fed raised the reserve requirement, the demand for reserves would
a. decrease, so the federal funds rate would fall.
b. increase, so the federal funds rate would fall.
,3|Page
c. decrease, so the federal funds rate would rise.
d. increase, so the federal funds rate would rise. - ANSWER-increase, so the federal funds rate would
rise.
The Federal Reserve
a. is the central bank of the United States.
b. is only responsible for controlling the money supply.
c. was created in 1896.
d. is part of the executive branch of government. - ANSWER-is the central bank of the United States.
If marginal cost is rising,
a. marginal product must be falling.
b. marginal product must be rising.
c. average variable cost must be falling.
d. average fixed cost must be rising. - ANSWER-marginal product must be falling.
If there is an increase in market demand in a perfectly competitive market, then in the short run
a. profits will rise.
b. there will be no change in the demand curves faced by individual firms in the market.
c. the demand curves facing firms will become more elastic.
d. the demand curves facing firms will shift downward. - ANSWER-profits will rise.
A competitive market is in long-run equilibrium. If demand decreases, we can be certain that price will
a. fall in the short run. All firms will shut down, and some of them will exit the industry. Price will then
rise to reach the new long-run equilibrium.
b. fall in the short run. All, some, or no firms will shut down, and some of them will exit the industry.
Price will then rise to reach the new long-run equilibrium.
c. not fall in the short run because firms will exit to maintain the price.
d. fall in the short run. No firms will shut down, but some of them will exit the industry. Price will then
rise to reach the new long-run equilibrium. - ANSWER-fall in the short run. All, some, or no firms will
, 4|Page
shut down, and some of them will exit the industry. Price will then rise to reach the new long-run
equilibrium.
When firms are said to be price takers, it implies that if a firm raises its price,
a. competitors will also raise their prices.
b. buyers will pay the higher price in the short run.
c. firms in the industry will exercise market power.
d. buyers will go elsewhere. - ANSWER-buyers will go elsewhere.
If a firm in a perfectly competitive market triples the quantity of output sold, then total revenue will
a. more than triple.
b. less than triple.
c. exactly triple.
d. be reduced by one third. - ANSWER-exactly triple.
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.
b. always decreases.
c. does not change.
d. always increases. - ANSWER-does not change.
Farmer McDonald sells wheat to a broker in Kansas City, Missouri. Because the market for wheat is
generally considered to be competitive, Mr. McDonald maximizes his profit by choosing
a. to produce the quantity at which average fixed cost is minimized.
b. the quantity at which market price is equal to Mr. McDonald's marginal cost of production.
c. to produce the quantity at which average variable cost is minimized.
d. the quantity at which market price exceeds Mr. McDonald's marginal cost of production by the
greatest amount. - ANSWER-the quantity at which market price is equal to Mr. McDonald's marginal cost
of production.
