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

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

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

2. What is a feature of a democracy?

A) It can and often does lead to nationalization, or expropriation, of foreign assets.
B) It delegates absolute political control over the population to one person or party.
C) It gives citizens the right to elect representatives to govern on their behalf.
D) It often results in higher risk associated with political changes that may negatively impact domestic and foreign firms.

3. What is a tariff levied on imports that are selling below cost in order to unfairly drive domestic firms out of business?

A) Opportunity cost
B) Deadweight cost
C) Antidumping duty
D) Factor endowment

4. What is an example of goods that tend to have negative cross-price elasticities?

A) Substitutes
B) Luxury goods
C) Complements
D) Inferior goods

5. Which characteristics are attributed to a democracy? (Choose THREE.)

A) It concentrates power in a single ruling party.
B) It contains political risk that is lower than in other political systems.
C) It extends the right to organize economically to domestic and foreign firms.
D) It prohibits private ownership.
E) It prizes freedom of expression and organization.

Solutions: