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

1. What happens when the Federal Reserve increases the money supply?

A) The aggregate supply curve shifts to the right
B) The aggregate supply curve shifts to the left
C) The aggregate demand curve shifts to the right
D) The aggregate demand curve shifts to the left

2. Which term best describes a market structure of limited competition in which the market is shared by a small number of sellers?

A) Oligopoly
B) Monopoly
C) Perfect competition
D) Monopolistic competition

3. Which phrase best describes property rights?

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

4. What are represented by formal institutions?

A) Cultural beliefs
B) Laws
C) Traditions
D) Social norms

5. When is it best for a firm to restart production?

A) When marginal cost is greater than marginal revenue
B) When total variable costs are less than total revenue after a short-term stop
C) When total cost is greater than total revenue
D) When total revenue is less than total cost

Solutions: