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

1. In order to increase the money supply, what does the Federal Reserve do?

A) Sells government bonds to the public
B) Raises the federal funds rate
C) Buys government bonds from the public
D) Increases reserve requirements

2. Which statement about consumer surplus is true?

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

3. When supply increases and demand stays the same, what happens to the equilibrium point of price and quantity?

A) Price remains the same
B) Quantity decreases
C) Price increases
D) Quantity increases

4. What is a key feature of an oligopoly?

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

5. What are represented by informal institutions?

A) Ethics
B) Rules
C) Regulations
D) Written laws

Solutions: