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

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

A) It places heavier weight on intangible services than tangible goods.
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 includes the income of citizens working abroad.

2. What is one characteristic of a market shortage?

A) Price is greater than the equilibrium price.
B) Quantity supplied is less than equilibrium quantity.
C) There is downward pressure on price.
D) Quantity demanded is less than equilibrium quantity.

3. What is the Nash equilibrium?

A) A particular situation between two entities that illustrates why cooperation is difficult to maintain even when it is mutually beneficial
B) A group of firms illegally acting in unison to improve profits or dominate a market
C) An agreement among firms in a market over production and price
D) A situation in which economic actors interacting with one another each choose their best strategy from among all available strategies currently being used by said actors

4. What is true about forward transactions?

A) They are the classic single-shot exchange of one currency for another.
B) They allow participants to buy and sell currencies now for future delivery.
C) They convert one currency into another at one time with an agreement to revert it back at another time in the future.
D) They allow traders to sell currency holdings at an exchange rate in the past.

5. What are examples of regulatory pillars? (Choose TWO.)

A) Investing in foreign currencies because others view it as safe
B) Paying parking tickets out of fear of a suspended driver's license
C) Coasting through stop signs because it is common
D) Refusing military service because of pacifist beliefs
E) Stealing office supplies because most colleagues are doing the same thing
F) Reporting a crime because it is against the law to withhold information

Solutions: