WGU C211 GLOBAL ECONOMICS EXAM
Complete Questions and Guide Answers
100% Verified Graded A+
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.
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.
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.
,4. Applying a tariff to coconuts will have the
following effect
Answer. Increase the domestic price of coconuts.
5. Which of the following is NOT a restriction to
trade?
Answer. Free trade areas.
6. What is the significant difference between an
import quota and a tariff?
Answer. A taritt raises revenue for the government and an import
quota creates surplus for
those who obtain licenses to import.
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.
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.
9. Which statement is true of consumer surplus?
Answer. Consumer surplus represents value to buyers in excess of the price paid for the product.
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.
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.
12. Which of the following statements describes
gross domestic product (GDP)?
Answer. GDP is the most used measure of a country's economic wellbeing.
13. Which of the following is an investment
included in the gross domestic product (GDP)
measure?
Answer. Spending on new residential
construction.
14. Gross Domestic Product (GDP) measures
which of the following?
Complete Questions and Guide Answers
100% Verified Graded A+
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.
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.
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.
,4. Applying a tariff to coconuts will have the
following effect
Answer. Increase the domestic price of coconuts.
5. Which of the following is NOT a restriction to
trade?
Answer. Free trade areas.
6. What is the significant difference between an
import quota and a tariff?
Answer. A taritt raises revenue for the government and an import
quota creates surplus for
those who obtain licenses to import.
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.
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.
9. Which statement is true of consumer surplus?
Answer. Consumer surplus represents value to buyers in excess of the price paid for the product.
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.
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.
12. Which of the following statements describes
gross domestic product (GDP)?
Answer. GDP is the most used measure of a country's economic wellbeing.
13. Which of the following is an investment
included in the gross domestic product (GDP)
measure?
Answer. Spending on new residential
construction.
14. Gross Domestic Product (GDP) measures
which of the following?
