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

1. What is one of the four strategic goals of firms looking for potential locations?

A) Market-seeking
B) Profit-seeking
C) Scale-seeking
D) Competition-seeking

2. Costs that do not vary with output quantity divided by the quantity of output is best described by which term?

A) Average fixed cost
B) Average variable cost
C) Marginal cost
D) Total cost

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

A) Perfect information
B) A single firm owning a key resource
C) Free entry and exit
D) Economies of scale in the production process
E) Elastic demand

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

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

5. Managers and firms rationally pursue their interests and make choices within institutional constraints.
Which situation illustrates this proposition of the institution-based view of global business?

A) A firm lowers prices to gain market share.
B) A multinational relocates production after a minimum wage increase.
C) A firm increases advertising to boost brand awareness.
D) A firm introduces a new product due to consumer trends.

Solutions: