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

1. Which GDP component is affected when a parent pays for a child's college education?

A) Government purchases
B) Consumption
C) Investment
D) Net exports

2. Which statement best summarizes the overall economic effect of tariffs?

A) They transfer surplus from consumers to producers and the government
B) They eliminate inefficiencies in global trade
C) They increase total economic surplus
D) They benefit consumers more than producers

3. Which mode of entry is an equity-based entry mode?

A) Licensing
B) Indirect exports
C) 50/50 joint ventures
D) Franchising

4. Which statement describes turnkey projects?

A) Clients pay contractors to design and construct new facilities and train personnel.
B) Two companies agree to mutually refer customers.
C) Two or more parent companies create and own a new entity.
D) Companies build new factories and offices from scratch.

5. Barriers to entry in a market are the main cause of monopolies. Which statement is accurate when the barrier to entry has its source in government regulation?

A) A single firm has the exclusive legal right to produce some good or service.
B) Economies of scale allow a firm to create output at a lower cost than other competitors.
C) A key resource required for production is owned by a single firm.
D) A single firm can supply a good or service to an entire market at a lower cost than two or more firms could.

Solutions: