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

1. Costs that do not vary with output quantity divided by the quantity of output is best described by which term?

A) Total cost
B) Average variable cost
C) Average fixed cost
D) Marginal cost

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

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

3. What is one of the four strategic goals of firms looking for potential locations?

A) Competition-seeking
B) Scale-seeking
C) Profit-seeking
D) Market-seeking

4. Which statements concerning property rights are true? (Choose TWO.)

A) Protection of property rights is commonly recognized as a major factor in allowing developing countries to make gains toward economic progress.
B) Securing property rights results in industries that employ little fixed capital and avoid long-term investment.
C) The primary purpose of establishing property rights is to provide economic benefit to society as a whole.
D) Developing countries can achieve economic growth even without securing property rights.
E) Insecure property rights bode well in global competition where firms benefit from economies of scale and sustained R & D.
F) Property rights are the legal rights regarding the use of an economic resource and for deriving income and benefits from it.

5. An institution-based view of global business focuses on the specific relationship between which two entities?

A) Customers and institutions
B) Customers and firms
C) Firms and governments
D) Firms and institutions

Solutions: