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

1. What are common types of barriers to entry that can cause a monopoly? (Choose TWO.)

A) Free entry and exit
B) Elastic demand
C) Perfect information
D) A single firm owning a key resource
E) Economies of scale in the production process

2. If the demand for a good is elastic, what is true?

A) The quantity demanded responds only slightly to changes in the price.
B) Price and total revenue move in the same direction.
C) The quantity demanded responds substantially to changes in the price.
D) Total revenue increases with a change in price in either direction.

3. If the demand for a good is inelastic, what is true?

A) Consumers are highly sensitive to price changes
B) Quantity demanded responds substantially to price changes
C) Price and total revenue move in opposite directions
D) Quantity demanded responds only slightly to price changes

4. What is true about gross domestic product (GDP)?

A) It places heavier weight on intangible services than tangible goods.
B) Its year-to-year percentage change represents the inflation rate.
C) It is thought to be the single best measure of a society's economic well-being.
D) It includes the income of citizens working abroad.

5. In a monopoly, which statements are likely true? (Choose TWO.)

A) Firms are price takers
B) Marginal revenue equals price
C) There are barriers to entry into the market
D) Entry is free in the long run
E) One seller offers a unique good with no close substitutes

Solutions: