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

1. The formula "fixed costs (FC) + variable costs (VC)" represents which quantity?

A) Marginal cost
B) Implicit cost
C) Average cost
D) Total cost

2. If the demand for a good is elastic, what is true?

A) Total revenue increases with a change in price in either direction.
B) Price and total revenue move in the same direction.
C) The quantity demanded responds only slightly to changes in the price.
D) The quantity demanded responds substantially to changes in the price.

3. What is one benefit of small-scale entries into foreign markets?

A) They focus on learning by doing while limiting the downside risk.
B) They present easy opportunities to build market share.
C) They give complete equity and operational control.
D) They demonstrate a strategic commitment to certain markets.

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

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

5. What are common types of barriers to entry that can cause a monopoly? (Choose TWO.)

A) Government regulations prohibiting foreign investment
B) A firm purchasing competitors
C) Elastic demand curves
D) Employee unions
E) Government regulations granting exclusive production rights
F) Economies of scale in the production process

Solutions: