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

1. Barriers to entry in a market are the main cause of monopolies. Which statement is accurate when the barrier to entry has its source in government regulation?

A) A single firm has the exclusive legal right to produce some good or service.
B) A single firm can supply a good or service to an entire market at a lower cost than two or more firms could.
C) A key resource required for production is owned by a single firm.
D) Economies of scale allow a firm to create output at a lower cost than other competitors.

2. What is a key feature of an oligopoly?

A) There is tension between cooperation and self-interest.
B) The actions of any one seller in the market have little to no impact on the profits of all the other sellers.
C) Firms in an oligopoly are independent of one another, much like competitive firms.
D) There is little, if any, motivation for cooperation between firms.

3. What is the necessity of making sensible decisions in the absence of complete information called?

A) Moral hazard
B) Adverse selection
C) Perfect rationality
D) Bounded rationality

4. What is an example of a company that is market-seeking?

A) A company searching for a location where a specific type of plastic is low-cost and readily available
B) A company searching for a location where rocks and minerals can be mined
C) A company searching for a location where there is a high interest in camping supplies
D) A company searching for a location where the cost of unskilled labor is low

5. Which term best describes an economic condition in which a nation exports more than it imports?

A) Trade deficit
B) Mercantilism
C) Trade surplus
D) Resource mobility

Solutions: