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

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

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

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

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

3. What are weaknesses of the theory of mercantilism? (Choose TWO.)

A) The theory leads to inefficient allocation of resources.
B) The theory promotes free trade.
C) The theory encourages specialization and productivity growth.
D) Application of the theory reduces national wealth in the long run.
E) The theory emphasizes comparative advantage.

4. An import tariff is implemented on apples. What is the effect on domestic government revenue?

A) It increases
B) It decreases
C) It becomes negative
D) It remains unchanged

5. If the demand for a good is inelastic, what is true?

A) Quantity demanded responds only slightly to price changes
B) Quantity demanded responds substantially to price changes
C) Consumers are highly sensitive to price changes
D) Price and total revenue move in opposite directions

Solutions: