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WGU Global Economics for Managers (C211, UZC2) Sample Questions:
1. Which characteristics are attributed to a democracy? (Choose THREE.)
A) It prizes freedom of expression and organization.
B) It concentrates power in a single ruling party.
C) It contains political risk that is lower than in other political systems.
D) It extends the right to organize economically to domestic and foreign firms.
E) It prohibits private ownership.
2. In an oligopoly with an initial agreement to maximize total profit, which statements might a firm motivated by self-interest likely make? (Choose THREE.)
A) "I am better off reducing output below the agreed level."
B) "If my fellow firms live up to the agreement, I am better off raising production."
C) "If my fellow firms fail to live up to the agreement and raise production, I am better off raising production myself."
D) "Regardless of what my fellow firms do, I am better off raising production beyond the agreed-to level."
E) "I should always cooperate, regardless of outcomes."
3. 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) Perfect competition
C) Monopolistic competition
D) Monopoly
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 producer surplus is $25.
D) The consumer surplus is $25.
5. When the Federal Reserve decreases the money supply, what is the result?
A) The quantity of goods and services demanded for one specific price increases.
B) The efficiency of market corrections is reduced.
C) The quantity of goods and services demanded for any given price decreases.
D) The aggregate demand for imports increases.
Solutions:
| Question # 1 Answer: A,C,D | Question # 2 Answer: B,C,D | Question # 3 Answer: A | Question # 4 Answer: A | Question # 5 Answer: C |







