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

1. What is the definition of marginal cost?

A) The fixed cost of production
B) The increase in cost that arises from producing an additional unit of output
C) The total cost divided by total output
D) The opportunity cost of capital

2. When an import tariff is placed on footwear, which quantity increases?

A) Producer surplus for footwear
B) Consumer surplus for footwear
C) The quantity of footwear imported
D) Domestic demand for footwear

3. When there is an expectation of lower income in the future, what is the effect on the demand curve for a normal good?

A) The demand curve shifts left.
B) The demand curve shifts up.
C) The demand curve shifts down.
D) The demand curve shifts right.

4. Which goods have a positive cross-price elasticity?

A) Substitutes
B) Complements
C) Shortage goods
D) Normal goods

5. In which situation is the dodger strategy appropriate for responding to multinational enterprises (MNEs)?

A) There is low industry pressure to globalize, and competitive assets are transferable abroad.
B) There is high industry pressure to globalize, and competitive assets are transferable abroad.
C) There is high industry pressure to globalize, and competitive assets are customized to home markets.
D) There is low industry pressure to globalize, and competitive assets are customized to home markets.

Solutions: