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

1. When supply decreases and demand stays the same, what happens to the equilibrium point of price and quantity? Choose two answers.

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

2. What are common types of barriers to entry that can cause a monopoly? (Choose TWO.)

A) Perfect information
B) Free entry and exit
C) Elastic demand
D) A single firm owning a key resource
E) Economies of scale in the production process

3. What is one example of something a copyright is used to protect?

A) The content of a book
B) The name of a brand
C) The design of a logo
D) The shape of a new invention

4. A shopper purchases a shirt for $17 but was willing to pay $25. What does this indicate?

A) The consumer surplus is $8.
B) The producer surplus is $17.
C) The consumer surplus is $25.
D) The producer surplus is $25.

5. The marginal cost of producing a computer is $600, but the marginal revenue is $1,000. What is the best action for the respective firm?

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

Solutions: