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

1. In a monopoly, which statements are likely true? (Choose TWO.)

A) Marginal revenue equals price
B) There are barriers to entry into the market
C) One seller offers a unique good with no close substitutes
D) Firms are price takers
E) Entry is free in the long run

2. When supply increases and demand stays the same, what happens to the equilibrium point of price and quantity?

A) Price remains the same
B) Quantity increases
C) Price increases
D) Quantity decreases

3. Which changes increase demand? (Choose TWO.)

A) An increase in the price of a substitute
B) A decrease in consumer income for a normal good
C) An increase in the price of the good itself
D) A decrease in the price of a complement

4. The marginal revenue from producing a smartphone is $200, and the marginal cost is $150. What is the best action for the firm?

A) Increase production
B) Pause production
C) Decrease production
D) Exit the market altogether

5. Which transaction is included in the consumption component of GDP?

A) A firm purchases new machinery
B) A government builds a highway
C) A person pays for a haircut
D) A company exports automobiles

Solutions: