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

1. 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 down.
C) The demand curve shifts right.
D) The demand curve shifts up.

2. An import tariff is implemented on furniture. What is the effect on consumer surplus for furniture?

A) It increases.
B) It does not change.
C) It decreases.
D) It changes depending on market conditions.

3. What are represented by formal institutions?

A) Social norms
B) Laws
C) Cultural beliefs
D) Traditions

4. 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.

5. What is true about producer surplus?

A) It measures social welfare
B) It equals total revenue
C) It measures the well-being of consumers
D) It is used to measure the well-being of sellers

Solutions: