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

1. What is the definition of marginal cost?

A) The total cost divided by total output
B) The opportunity cost of capital
C) The increase in cost that arises from producing an additional unit of output
D) The fixed cost of production

2. When supply increases and demand stays the same, what happens to the equilibrium point of price and quantity?

A) Price increases
B) Quantity decreases
C) Price remains the same
D) Quantity increases

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

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

4. What are represented by informal institutions?

A) Ethics
B) Rules
C) Written laws
D) Regulations

5. What is one of the OLI advantages outlined by John Dunning for why firms become multinational enterprises by engaging in foreign direct investment?

A) Ownership advantages
B) Location advantages
C) Internalization advantages
D) Competitive neutrality

Solutions: