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

1. What is a key feature of an oligopoly?

A) Products are always homogeneous.
B) The market represents a prisoner's dilemma.
C) Entry is free in the long run.
D) Firms are price takers.

2. An import tariff is implemented on apples. What is the effect on domestic government revenue?

A) It becomes negative
B) It increases
C) It decreases
D) It remains unchanged

3. What is a tariff levied on imports that are selling below cost in order to unfairly drive domestic firms out of business?

A) Factor endowment
B) Deadweight cost
C) Antidumping duty
D) Opportunity cost

4. Which phrase best describes property rights?

A) The exclusive legal rights of authors and publishers to publish and disseminate their works.
B) The legal rights awarded by government authorities to inventors of new products or processes.
C) The exclusive legal rights of firms to use specific names, brands, and designs to differentiate their products from others.
D) The legal rights regarding the use of an economic resource and for deriving income and benefits from it.

5. Direct exports have which advantage?

A) Elimination of exchange rate risk
B) Lower transportation costs
C) Full control over foreign distribution
D) Capitalization of economies of scale in production in the home country

Solutions: