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

1. Which scenario most likely describes a late mover?

A) A company gains advantage through proprietary technology.
B) A company is able to erect significant barriers for other entrants.
C) A company makes preemptive investments.
D) A company faces fewer market uncertainties.

2. What is purchasing power parity (PPP)?

A) The gain from taking advantage of inefficient exchange rates
B) The movement of investors in the same direction at the same time
C) A theory suggesting that the price for identical products sold in different countries must be the same in the absence of trade barriers
D) The idea that a country ' s exchange rate is an indicator of socioeconomic well-being

3. Which statement about consumer surplus is true?

A) It measures total production efficiency
B) It measures the well-being of sellers
C) It is a good measure of economic well-being if policymakers want to satisfy buyers' preferences
D) It represents government revenue

4. Which term best describes an economic condition in which a nation exports more than it imports?

A) Resource mobility
B) Mercantilism
C) Trade deficit
D) Trade surplus

5. What is opportunity cost?

A) The marginal benefit of an additional unit
B) The total cost of all inputs used in production
C) The explicit monetary cost of an activity
D) The lost potential from pursuing one activity at the expense of another, given the alternatives

Solutions: