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

1. What is one characteristic of a market surplus?

A) There is upward pressure on price
B) Price is below equilibrium
C) Quantity demanded exceeds quantity supplied
D) Quantity supplied exceeds quantity demanded

2. What is the bandwagon effect?

A) Investors moving independently based on private information
B) The tendency of prices to return to equilibrium
C) The movement of investors in the same direction at the same time
D) Government intervention to stabilize markets

3. When supply decreases and demand stays the same, what happens to the equilibrium point of price and quantity? Choose two answers.

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

4. Which entrant is able to erect significant barriers for other entrants?

A) First mover
B) Dodger
C) Contender
D) Late mover

5. Barriers to entry in a market are the main cause of monopolies. Which statement is accurate when the barrier to entry has its source in government regulation?

A) A single firm has the exclusive legal right to produce some good or service.
B) A single firm can supply a good or service to an entire market at a lower cost than two or more firms could.
C) Economies of scale allow a firm to create output at a lower cost than other competitors.
D) A key resource required for production is owned by a single firm.

Solutions: