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

1. An import tariff is implemented on furniture. What is the effect on consumer surplus for furniture?

A) It decreases.
B) It increases.
C) It changes depending on market conditions.
D) It does not change.

2. What are key features of an oligopoly? (Choose THREE.)

A) There is little motivation for cooperation between firms.
B) The actions of any one seller have little impact on others' profits.
C) Firms are independent of one another, like competitive firms.
D) There are a few sellers.
E) Firms in an oligopoly are interdependent in ways competitive firms are not.
F) The actions of any one seller can have a large impact on the profits of other sellers.

3. What is true about tariffs?

A) They eliminate deadweight loss
B) They increase consumer surplus
C) They allow the government to raise revenue
D) They lower domestic prices below world prices

4. When demand decreases and supply stays the same, what happens to the equilibrium point of price and quantity? (Choose TWO.)

A) Price increases
B) Quantity decreases
C) Price decreases
D) Quantity increases

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

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

Solutions: