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

1. Which statement characterizes an institution-based view of global business?

A) Government regulations are the primary driver of institutional change.
B) Financial motivations are excluded from consideration in explaining the interactions between institutions and firms.
C) Firm behaviors are the outcome of interactions between institutions and firms.
D) Institutions, not firms, are the sole factor in explaining individual behavior.

2. What is the profit maximization condition for a monopoly?

A) When price equals marginal cost
B) When marginal revenue equals marginal cost
C) When marginal cost is minimized
D) When total revenue is maximized

3. What are features shared by monopolies and perfect competition? (Choose TWO.)

A) The structure does not produce the welfare-maximizing level of output.
B) Firms earn economic profits in the short run.
C) Maximum profit occurs when marginal revenue equals marginal cost.
D) In the long run, it is nearly impossible for new firms to enter.
E) Price is greater than marginal cost.
F) In the long run, new firms can easily enter the market.

4. When is it best for a firm to increase production?

A) When average cost is minimized
B) When marginal revenue is greater than marginal cost
C) When marginal cost exceeds marginal revenue
D) When total revenue is maximized

5. What is one characteristic of a market shortage?

A) Quantity demanded is less than equilibrium quantity.
B) There is downward pressure on price.
C) Price is greater than the equilibrium price.
D) Quantity supplied is less than equilibrium quantity.

Solutions: