WGU C211 OA FINAL PAPER 2025/2026 QUESTIONS WITH
ANSWERS GUARANTEE A+
✔✔Which condition must be satisfied for a competitive firm to shut down in a short run?
- ✔✔Total variable costs are greater than total revenue
✔✔What will a competitive firm do in the short run if its average variable cost exceeds
price? - ✔✔It will shut down
✔✔What is a characteristic of a monopoly demand curve? - ✔✔It is the same as the
market demand curve
✔✔Which statement describes a monopoly's demand curve? - ✔✔It is less elastic than
a perfectly competitive firms demand curve
✔✔What is the profit maximization condition for a monopoly? - ✔✔Where marginal
revenue equals marginal cost
✔✔What is a characteristic of monopolistic competition? - ✔✔Many firms sell
differentiated products
✔✔How does self-interest influence each prisoner's decision in the prisoner's dilemma?
- ✔✔Neither prisoner will confess
✔✔Why is studying the prisoners dilemma applicable to business? - ✔✔It demonstrates
the value of mapping out potential strategy given actions of rivals
✔✔What does an indifference curve illustrate? - ✔✔The preferences of a consumer
✔✔What happens to an individual's budget constraint if the budget decreases and
prices remain the same? - ✔✔The budget constraints line shifts parallel inward
✔✔What happens to the nominal interest rate and the quantity of money if the Federal
Reserve increase the reserve requirement? Chose 2 answers - ✔✔The interest rate
increases
The quantity of money decreases
✔✔What will happen to the equilibrium in the market for a good if demand and supply
increase simultaneously? - ✔✔Equilibrium quantity will always increase
✔✔What concept measures how much the quantity supplied responds to change in
price? - ✔✔Price elasticity of supply
, ✔✔Which elasticity of demand measures how the quantity demanded of one good
responds to a change in price of another good? - ✔✔Cross-price elasticity of demand
✔✔What is the interest rate on a loan borrowed by banks from the federal reserves? -
✔✔Discount Rate
✔✔Which target rate would the federal reserve lower in order to stimulate the economy
and avoid a recession? - ✔✔The federal funds rate
✔✔Which action would the federal reserve rate take to expand the money supply and
lower the equilibrium interest rate? - ✔✔Purchase government bonds on the open
market
✔✔What happens when the price of a good increases holding everything else constant?
- ✔✔Consumer surplus decreases
✔✔Which activity will result in an increase in gross domestic product (GDP) other things
being equal? - ✔✔A law passes making the sale of recreational marijuana legal
✔✔Which two types of investment are included in gross domestic product (GDP) -
✔✔Spending on new residential construction
Spending to build new factories
✔✔A nation begins applying a tariff on bananas which is imported product - ✔✔Price
will increase
✔✔A nation has implemented a tariff on rare minerals. How will this affect the price
domestic consumers pay? - ✔✔It will cause the price consumers pay to go up
✔✔Which factor influences price elasticity demand - ✔✔Availability of close substitutes
✔✔What concept measures how much the quantity supplied responds to change in
price? - ✔✔Price elasticity of supply
✔✔Which type of Market Operations does the federal reserve use to increase the
money supply when it buys bonds from the public in the nation's bond market? -
✔✔Open Market Operations
✔✔If the government increases it's purchase by $10. billion the aggregate demand for
goods and services could rise by more than $10 billion what does this illustrate? -
✔✔Multiplier effect
ANSWERS GUARANTEE A+
✔✔Which condition must be satisfied for a competitive firm to shut down in a short run?
- ✔✔Total variable costs are greater than total revenue
✔✔What will a competitive firm do in the short run if its average variable cost exceeds
price? - ✔✔It will shut down
✔✔What is a characteristic of a monopoly demand curve? - ✔✔It is the same as the
market demand curve
✔✔Which statement describes a monopoly's demand curve? - ✔✔It is less elastic than
a perfectly competitive firms demand curve
✔✔What is the profit maximization condition for a monopoly? - ✔✔Where marginal
revenue equals marginal cost
✔✔What is a characteristic of monopolistic competition? - ✔✔Many firms sell
differentiated products
✔✔How does self-interest influence each prisoner's decision in the prisoner's dilemma?
- ✔✔Neither prisoner will confess
✔✔Why is studying the prisoners dilemma applicable to business? - ✔✔It demonstrates
the value of mapping out potential strategy given actions of rivals
✔✔What does an indifference curve illustrate? - ✔✔The preferences of a consumer
✔✔What happens to an individual's budget constraint if the budget decreases and
prices remain the same? - ✔✔The budget constraints line shifts parallel inward
✔✔What happens to the nominal interest rate and the quantity of money if the Federal
Reserve increase the reserve requirement? Chose 2 answers - ✔✔The interest rate
increases
The quantity of money decreases
✔✔What will happen to the equilibrium in the market for a good if demand and supply
increase simultaneously? - ✔✔Equilibrium quantity will always increase
✔✔What concept measures how much the quantity supplied responds to change in
price? - ✔✔Price elasticity of supply
, ✔✔Which elasticity of demand measures how the quantity demanded of one good
responds to a change in price of another good? - ✔✔Cross-price elasticity of demand
✔✔What is the interest rate on a loan borrowed by banks from the federal reserves? -
✔✔Discount Rate
✔✔Which target rate would the federal reserve lower in order to stimulate the economy
and avoid a recession? - ✔✔The federal funds rate
✔✔Which action would the federal reserve rate take to expand the money supply and
lower the equilibrium interest rate? - ✔✔Purchase government bonds on the open
market
✔✔What happens when the price of a good increases holding everything else constant?
- ✔✔Consumer surplus decreases
✔✔Which activity will result in an increase in gross domestic product (GDP) other things
being equal? - ✔✔A law passes making the sale of recreational marijuana legal
✔✔Which two types of investment are included in gross domestic product (GDP) -
✔✔Spending on new residential construction
Spending to build new factories
✔✔A nation begins applying a tariff on bananas which is imported product - ✔✔Price
will increase
✔✔A nation has implemented a tariff on rare minerals. How will this affect the price
domestic consumers pay? - ✔✔It will cause the price consumers pay to go up
✔✔Which factor influences price elasticity demand - ✔✔Availability of close substitutes
✔✔What concept measures how much the quantity supplied responds to change in
price? - ✔✔Price elasticity of supply
✔✔Which type of Market Operations does the federal reserve use to increase the
money supply when it buys bonds from the public in the nation's bond market? -
✔✔Open Market Operations
✔✔If the government increases it's purchase by $10. billion the aggregate demand for
goods and services could rise by more than $10 billion what does this illustrate? -
✔✔Multiplier effect
