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

1. Which entrant is able to erect significant barriers for other entrants?

A) Contender
B) Dodger
C) First mover
D) Late mover

2. Which good tends to have elastic demand?

A) A good that is tangible
B) A good with few complements
C) A good with many complements
D) A good with close substitutes

3. What does the Federal Reserve do to expand aggregate demand? (Choose TWO.)

A) Raise mortgage rates
B) Increase the foreign exchange rate
C) Lower the interest rate
D) Reduce the quantity of reserves
E) Decrease the money supply
F) Increase the money supply

4. What is purchasing power parity (PPP)?

A) The idea that a country ' s exchange rate is an indicator of socioeconomic well-being
B) A theory suggesting that the price for identical products sold in different countries must be the same in the absence of trade barriers
C) The movement of investors in the same direction at the same time
D) The gain from taking advantage of inefficient exchange rates

5. What is a characteristic of a market economy?

A) It is defined by a government taking the authoritative role in the economy.
B) Factors of production are government-owned or state-owned.
C) The government takes a hands-off approach known as laissez-faire.
D) It found a near ideal in China and the former Soviet Union during the heydays of communism.

Solutions: