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

2. A country has experienced a decrease in inflation. What is the effect on the country's currency exchange rate?

A) It becomes unstable
B) It depreciates
C) It increases
D) It has no effect

3. Which phrase best describes property rights?

A) The legal rights awarded by government authorities to inventors of new products or processes.
B) The exclusive legal rights of authors and publishers to publish and disseminate their works.
C) The legal rights regarding the use of an economic resource and for deriving income and benefits from it.
D) The exclusive legal rights of firms to use specific names, brands, and designs to differentiate their products from others.

4. When producing a piece of luggage, the marginal cost is $92 and the marginal revenue is $81. What is the best action for the firm?

A) Restart production
B) Enter the market
C) Decrease production
D) Increase production

5. In which mode of entry do companies build new factories and offices from scratch?

A) Co-marketing operations
B) Joint ventures
C) Direct exports
D) Greenfield operations

Solutions: