WGU C211 OA Global Economics Exam (2025 /
2026) Questions and Verified Answers, 100%
Guarantee Pass
WGU C211 OA Global Economics. These questions are designed in the style of the official
Objective Assessment: scenario-heavy, multi-concept, and application-intensive. Answers and
brief rationales follow at the end.
WGU C211 Global Economics — Practice OA Exam
80 Questions — Challenging / Board-Level
SECTION I — MACROECONOMIC FOUNDATIONS
1.
Country X experiences a sudden drop in consumer confidence. Aggregate consumption falls
sharply. In the short run, which combination is most likely?
A. SRAS left, unemployment ↑
B. AD right, GDP ↑
,C. AD left, price level ↓
D. LRAS right, price level constant
2.
If the central bank increases the reserve requirement, which sequence best describes the
monetary effects?
A. Money supply ↑ → interest rates ↓ → investment ↑
B. Money supply ↓ → interest rates ↑ → investment ↓
C. Money supply ↓ → inflation ↑ → exports ↓
D. Money supply ↑ → price level ↓ → AD left
3.
Assume the economy is at full employment. A permanent tax cut is enacted. According to the
Ricardian Equivalence critique, what is the likely consumer response?
A. Higher current spending
B. No change in consumption
C. Shift from savings to investment
D. Increased imports
SECTION II — INTERNATIONAL TRADE & FINANCE
4.
A country’s currency depreciates. All else equal, what happens to its current account and why?
A. CA improves; exports cheaper
B. CA worsens; imports cheaper
C. CA unchanged; PPP adjusts
D. CA worsens; capital inflows
5.
Country A subsidizes steel exports. What’s the most likely WTO finding?
A. Export subsidy permitted
B. Violates non-discrimination
C. Legal under GATS
D. Promotes terms of trade improvement
, 6.
Under Purchasing Power Parity (PPP), if Country A inflation > Country B inflation, Country A’s
currency should:
A. Appreciate
B. Depreciate
C. Remain constant
D. Invert yield curve
7.
A flexible exchange rate regime best allows a country to:
A. Independently set monetary policy
B. Maintain fixed par value
C. Eliminate trade deficits
D. Control inflation via tariffs
SECTION III — MARKET STRUCTURES & POLICY
8.
A monopolistically competitive firm in LR equilibrium:
A. Produces at minimum ATC
B. Earns zero economic profit
C. Price = MC
D. Faces horizontal demand
9.
Which is most likely a natural monopoly?
A. Fast food
B. Utilities with high fixed cost
C. Software firm
D. Retail bookstore
10.
2026) Questions and Verified Answers, 100%
Guarantee Pass
WGU C211 OA Global Economics. These questions are designed in the style of the official
Objective Assessment: scenario-heavy, multi-concept, and application-intensive. Answers and
brief rationales follow at the end.
WGU C211 Global Economics — Practice OA Exam
80 Questions — Challenging / Board-Level
SECTION I — MACROECONOMIC FOUNDATIONS
1.
Country X experiences a sudden drop in consumer confidence. Aggregate consumption falls
sharply. In the short run, which combination is most likely?
A. SRAS left, unemployment ↑
B. AD right, GDP ↑
,C. AD left, price level ↓
D. LRAS right, price level constant
2.
If the central bank increases the reserve requirement, which sequence best describes the
monetary effects?
A. Money supply ↑ → interest rates ↓ → investment ↑
B. Money supply ↓ → interest rates ↑ → investment ↓
C. Money supply ↓ → inflation ↑ → exports ↓
D. Money supply ↑ → price level ↓ → AD left
3.
Assume the economy is at full employment. A permanent tax cut is enacted. According to the
Ricardian Equivalence critique, what is the likely consumer response?
A. Higher current spending
B. No change in consumption
C. Shift from savings to investment
D. Increased imports
SECTION II — INTERNATIONAL TRADE & FINANCE
4.
A country’s currency depreciates. All else equal, what happens to its current account and why?
A. CA improves; exports cheaper
B. CA worsens; imports cheaper
C. CA unchanged; PPP adjusts
D. CA worsens; capital inflows
5.
Country A subsidizes steel exports. What’s the most likely WTO finding?
A. Export subsidy permitted
B. Violates non-discrimination
C. Legal under GATS
D. Promotes terms of trade improvement
, 6.
Under Purchasing Power Parity (PPP), if Country A inflation > Country B inflation, Country A’s
currency should:
A. Appreciate
B. Depreciate
C. Remain constant
D. Invert yield curve
7.
A flexible exchange rate regime best allows a country to:
A. Independently set monetary policy
B. Maintain fixed par value
C. Eliminate trade deficits
D. Control inflation via tariffs
SECTION III — MARKET STRUCTURES & POLICY
8.
A monopolistically competitive firm in LR equilibrium:
A. Produces at minimum ATC
B. Earns zero economic profit
C. Price = MC
D. Faces horizontal demand
9.
Which is most likely a natural monopoly?
A. Fast food
B. Utilities with high fixed cost
C. Software firm
D. Retail bookstore
10.
