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WGU Global Economics for Managers (C211, UZC2) Sample Questions:

1. The formula "fixed costs (FC) + variable costs (VC)" represents which quantity?

A) Implicit cost
B) Average cost
C) Total cost
D) Marginal cost

2. When demand decreases and supply stays the same, what happens to the equilibrium point of price and quantity? (Choose TWO.)

A) Price decreases
B) Price increases
C) Quantity decreases
D) Quantity increases

3. What is a characteristic of a market economy?

A) It leaves the planning of supply, demand, and pricing to the government.
B) It is in place in most of the world's countries.
C) It emphasizes private ownership of all factors of production.
D) It gives the government the primary authoritative role in the economy.

4. In order to increase the money supply, what does the Federal Reserve do?

A) Buys government bonds from the public
B) Sells government bonds to the public
C) Increases reserve requirements
D) Raises the federal funds rate

5. Which statement characterizes an institution-based view of global business?

A) Institutions, not firms, are the sole factor in explaining individual behavior.
B) Government regulations are the primary driver of institutional change.
C) Financial motivations are excluded from consideration in explaining the interactions between institutions and firms.
D) Firm behaviors are the outcome of interactions between institutions and firms.

Solutions: