WGU C211 OA GLOBAL ECONOMICS FOR
MANAGERS EXAM SCRIPT 2026 QUESTIONS
AND VERIFIED CORRECT ANSWERS
⩥ Which of the following is a consequence of a
country imposing a tariff on imported goods? Answer: The demand for
foreign produced goods
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.
⩥ Applying a tariff to coconuts will have the
following effect: Answer: Increase the domestic price of
coconuts.
⩥ 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.
⩥ 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
MANAGERS EXAM SCRIPT 2026 QUESTIONS
AND VERIFIED CORRECT ANSWERS
⩥ Which of the following is a consequence of a
country imposing a tariff on imported goods? Answer: The demand for
foreign produced goods
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.
⩥ Applying a tariff to coconuts will have the
following effect: Answer: Increase the domestic price of
coconuts.
⩥ 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.
⩥ 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
