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

1. What is one of the two major exchange rate policies?

A) Matched rate
B) Discount rate
C) Fiscal rate
D) Floating rate

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

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

3. Which phrase best describes property rights?

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

4. What are examples of variable costs? Choose two answers.

A) A $1,000 license fee charged by the state government to operate a shop
B) The CEO's salary for a major manufacturing firm
C) The cost of the parts used in individual devices made by a computer manufacturer
D) The rent paid by a magazine publisher for its creative team
E) The monthly internet cost in a business that produces women's apparel
F) A 5% tax charged by the government on variable inputs

5. What are costs to home countries of foreign direct investment (FDI)? (Choose TWO.)

A) Reduced standard of living
B) Loss of sovereignty
C) Cultural disintegration
D) Job loss
E) Capital outflow
F) Loss of intellectual property

Solutions: