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

1. A country has seen an increase in inflation. What is the effect on the country's currency exchange rate?

A) It remains the same.
B) It changes, but in an unknown direction.
C) It decreases.
D) It increases.

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

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

3. Which transaction is included in the consumption component of GDP?

A) A person pays for a haircut
B) A government builds a highway
C) A firm purchases new machinery
D) A company exports automobiles

4. 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

5. Which characteristic is attributed to totalitarianism?

A) It prizes an individual ' s right to freedom of expression and organization.
B) It contains some political risk, but risk that is qualitatively lower than in other political systems.
C) It delegates absolute political control over the population to one person or party.
D) It gives citizens the right to elect representatives to govern on their behalf.

Solutions: