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

1. Which statement is true for a monopoly firm, but not for a competitive firm?

A) The firm is a price taker.
B) Economic profit is zero in the long run.
C) The marginal revenue equals the price.
D) The marginal revenue is less than its price.

2. What is an example of goods that tend to have negative cross-price elasticities?

A) Substitutes
B) Complements
C) Luxury goods
D) Inferior goods

3. Which transaction is included in the consumption component of GDP?

A) A person pays for a haircut
B) A company exports automobiles
C) A firm purchases new machinery
D) A government builds a highway

4. Point A is on the same indifference curve as Point B. What can be said about the points?

A) Point B represents a bundle that costs more than Point A.
B) The consumer prefers bundle A over bundle B.
C) The consumer's preference for bundle A is the same as for bundle B.
D) Point A represents a bundle that costs more than Point B.

5. What are three characteristics of industries primed for collusion? (Choose THREE.)

A) A small number of rivals
B) A price leader
C) Free entry and exit
D) Homogeneous products
E) Perfect information for consumers
F) High product differentiation

Solutions: