WGU C211 - Global Economics for Managers Exam
Questions and Answers Rated A+ Latest 2025
If an import tariff is imposed on coconuts that are imported into the U.S., how will this impact the price
of coconuts for U.S. consumers? - correct answer ✅Increase the price.
Why might a government be interested in imposing an import tariff on a good? What benefit would the
government derive primarily? - correct answer ✅The tariff will reduce the amount of importans,
increase the amount of exports. The primary benefit is that it raises revenue for the government.
How would imposing an import tariff on cigars impact the domestic production of cigars? - correct
answer ✅Quantity increases for exporting at world price.
If an import tariff on coconuts was removed in the U.S., how would this impact the demand for coconuts
by U.S. consumers? - correct answer ✅The demand would increase.
What would happen to the overall domestic demand for a good if an import tariff were imposed on that
good? - correct answer ✅It would increase.
How does a tariff generally impact the following entities: consumers, producers, government? Compare
the effects between the entities - correct answer ✅Domestic sellers are better off, and domestic buyers
are worse off. In addition, the government raises revenue.
Consumer surplus - correct answer ✅The amount a buyer is willing to pay for a good minus the amount
the buyer actually pays for it
Who receives consumer surplus? - correct answer ✅The buyer.
In relation to the demand curve and price, how is consumer surplus measured? - correct answer ✅The
area below the demand curve and above the price measures the consumer surplus in a market.
Producer surplus - correct answer ✅The amount a seller is paid for a good minus the seller's cost of
providing it
, WGU C211 - Global Economics for Managers Exam
Questions and Answers Rated A+ Latest 2025
Who receives producer surplus? - correct answer ✅The seller.
In relation to the demand curve and price, how is producer surplus measured? - correct answer ✅The
area below the price and above the supply curve measures the producer surplus in a market.
How is total surplus determined? - correct answer ✅The total value to buyers of the goods, as
measured by their willingness to pay, minus the total cost to sellers of providing those goods.
In what ways might government or policy makers make use of surplus measures? - correct answer ✅To
measure the economic well being of a society, in terms of efficiency and equality. (i.e. maximizing total
surplus received (efficiency) and distributing economic prosperity (equality) uniformly among the
members of society
Macroeconomics - correct answer ✅The study of economy-wide phenomena, including inflation,
unemployment, and economic growth.
Microeconomics - correct answer ✅The study of how households and firms make decisions and how
they interact in markets.
Why must income equal expenditure in an economy as a whole? - correct answer ✅An economy's
income is the same as its expenditure because every transaction has two parties: a buyer and a seller.
Gross domestic product (GDP) - correct answer ✅The market value of all final goods and services
produced within a country in a given period of time.
Four components of GDP - correct answer ✅(1) Consumption (2) Investment (3) Govt purchases (4) Net
exports
Why are transfer payments such as social security not counted in government expenditures? - correct
answer ✅Because they are not made in exchange for a currently produced good or service. Transfer
payments alter household income, but they do not reflect the economy's production.
Questions and Answers Rated A+ Latest 2025
If an import tariff is imposed on coconuts that are imported into the U.S., how will this impact the price
of coconuts for U.S. consumers? - correct answer ✅Increase the price.
Why might a government be interested in imposing an import tariff on a good? What benefit would the
government derive primarily? - correct answer ✅The tariff will reduce the amount of importans,
increase the amount of exports. The primary benefit is that it raises revenue for the government.
How would imposing an import tariff on cigars impact the domestic production of cigars? - correct
answer ✅Quantity increases for exporting at world price.
If an import tariff on coconuts was removed in the U.S., how would this impact the demand for coconuts
by U.S. consumers? - correct answer ✅The demand would increase.
What would happen to the overall domestic demand for a good if an import tariff were imposed on that
good? - correct answer ✅It would increase.
How does a tariff generally impact the following entities: consumers, producers, government? Compare
the effects between the entities - correct answer ✅Domestic sellers are better off, and domestic buyers
are worse off. In addition, the government raises revenue.
Consumer surplus - correct answer ✅The amount a buyer is willing to pay for a good minus the amount
the buyer actually pays for it
Who receives consumer surplus? - correct answer ✅The buyer.
In relation to the demand curve and price, how is consumer surplus measured? - correct answer ✅The
area below the demand curve and above the price measures the consumer surplus in a market.
Producer surplus - correct answer ✅The amount a seller is paid for a good minus the seller's cost of
providing it
, WGU C211 - Global Economics for Managers Exam
Questions and Answers Rated A+ Latest 2025
Who receives producer surplus? - correct answer ✅The seller.
In relation to the demand curve and price, how is producer surplus measured? - correct answer ✅The
area below the price and above the supply curve measures the producer surplus in a market.
How is total surplus determined? - correct answer ✅The total value to buyers of the goods, as
measured by their willingness to pay, minus the total cost to sellers of providing those goods.
In what ways might government or policy makers make use of surplus measures? - correct answer ✅To
measure the economic well being of a society, in terms of efficiency and equality. (i.e. maximizing total
surplus received (efficiency) and distributing economic prosperity (equality) uniformly among the
members of society
Macroeconomics - correct answer ✅The study of economy-wide phenomena, including inflation,
unemployment, and economic growth.
Microeconomics - correct answer ✅The study of how households and firms make decisions and how
they interact in markets.
Why must income equal expenditure in an economy as a whole? - correct answer ✅An economy's
income is the same as its expenditure because every transaction has two parties: a buyer and a seller.
Gross domestic product (GDP) - correct answer ✅The market value of all final goods and services
produced within a country in a given period of time.
Four components of GDP - correct answer ✅(1) Consumption (2) Investment (3) Govt purchases (4) Net
exports
Why are transfer payments such as social security not counted in government expenditures? - correct
answer ✅Because they are not made in exchange for a currently produced good or service. Transfer
payments alter household income, but they do not reflect the economy's production.
