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

1. What is a key feature of an oligopoly?

A) There is tension between cooperation and self-interest.
B) There is little, if any, motivation for cooperation between firms.
C) The actions of any one seller in the market have little to no impact on the profits of all the other sellers.
D) Firms in an oligopoly are independent of one another, much like competitive firms.

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

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

3. What measures how the quantity demanded of one good responds to a change in the price of another good?

A) Cross-price elasticity of demand
B) Quantity elasticity of demand
C) Equilibrium elasticity of demand
D) Price elasticity of demand

4. How does the Federal Reserve lower the federal funds rate?

A) By increasing taxes
B) By selling government bonds
C) By purchasing government bonds
D) By raising reserve requirements

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

A) Elastic demand curves
B) A firm purchasing competitors
C) Government regulations granting exclusive production rights
D) Economies of scale in the production process
E) Employee unions
F) Government regulations prohibiting foreign investment

Solutions: