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

1. How does the Federal Reserve lower the federal funds rate?

A) By purchasing government bonds
B) By raising reserve requirements
C) By selling government bonds
D) By increasing taxes

2. In an oligopoly with an initial agreement to maximize total profit, which statements might a firm motivated by self-interest likely make? (Choose THREE.)

A) "I should always cooperate, regardless of outcomes."
B) "If my fellow firms fail to live up to the agreement and raise production, I am better off raising production myself."
C) "Regardless of what my fellow firms do, I am better off raising production beyond the agreed-to level."
D) "If my fellow firms live up to the agreement, I am better off raising production."
E) "I am better off reducing output below the agreed level."

3. Which quantity measures the market value of all final goods and services produced within a country in a given period of time?

A) Gross domestic product (GDP)
B) Net domestic product (NDP)
C) Gross national income (GNI)
D) National disposable income

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

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

5. What is a characteristic of a market economy?

A) Factors of production are government-owned or state-owned.
B) The government takes a hands-off approach known as laissez-faire.
C) It is defined by a government taking the authoritative role in the economy.
D) It found a near ideal in China and the former Soviet Union during the heydays of communism.

Solutions: