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

1. What is opportunity cost?

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

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

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

3. Which statement about the GDP deflator is true?

A) It includes fewer core economic measurements than GDP.
B) Its percentage change from one year to the next is the inflation rate.
C) It is a more reliable indicator of economic well-being than real GDP.
D) It follows a nearly strict decreasing pattern from a base year.

4. Which statement best summarizes the overall economic effect of tariffs?

A) They transfer surplus from consumers to producers and the government
B) They benefit consumers more than producers
C) They increase total economic surplus
D) They eliminate inefficiencies in global trade

5. What is true about gross domestic product (GDP)?

A) It includes the income of citizens working abroad.
B) It is thought to be the single best measure of a society's economic well-being.
C) Its year-to-year percentage change represents the inflation rate.
D) It places heavier weight on intangible services than tangible goods.

Solutions: