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

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

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

2. A country has seen an increase in inflation. What is the effect on the country's currency exchange rate?

A) It changes, but in an unknown direction.
B) It remains the same.
C) It increases.
D) It decreases.

3. What are represented by informal institutions?

A) Regulations
B) Written laws
C) Rules
D) Ethics

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

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

5. What are weaknesses of the theory of mercantilism? (Choose TWO.)

A) The theory emphasizes comparative advantage.
B) The theory leads to inefficient allocation of resources.
C) Application of the theory reduces national wealth in the long run.
D) The theory encourages specialization and productivity growth.
E) The theory promotes free trade.

Solutions: