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WGU Global-Economics-for-Managers Exam Syllabus Topics:

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

1. What is opportunity cost?

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

2. Which term best describes a market structure of limited competition in which the market is shared by a small number of sellers?

A) Oligopoly
B) Monopoly
C) Perfect competition
D) Monopolistic competition

3. What is purchasing power parity (PPP)?

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

4. In an oligopoly with an initial agreement to maximize total profit, which statements might a firm motivated by self-interest likely make? (Choose THREE.)

A) "If my fellow firms live up to the agreement, I am better off raising production."
B) "I am better off reducing output below the agreed level."
C) "Regardless of what my fellow firms do, I am better off raising production beyond the agreed-to level."
D) "If my fellow firms fail to live up to the agreement and raise production, I am better off raising production myself."
E) "I should always cooperate, regardless of outcomes."

5. What is true about forward transactions?

A) They convert one currency into another at one time with an agreement to revert it back at another time in the future.
B) They allow traders to sell currency holdings at an exchange rate in the past.
C) They allow participants to buy and sell currencies now for future delivery.
D) They are the classic single-shot exchange of one currency for another.

Solutions: