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WGU C211 OA GLOBAL ECONOMICS EXAM 2
LATEST VERSIONS QUESTIONS AND CORRECT
DETAILED ANSWERS WITH RATIONALES
ALREADY GRADED A+
WGU C211 Global Economics for Managers exam 1 How does the shape of a monopoly's demand curve compare to that of a perfectly competitive firm? - ANSWER>>The monopoly's demand curve is downward sloping and the competitive firm's demand curve is horizontal.
Which price will a monopoly set? - ANSWER>>Above marginal cost
Which condition determines the profit maximizing output for a monopolist? - ANSWER>>Marginal revenue equals marginal cost
What is characteristic of monopolistic competition? - ANSWER>>Easy Market Entry
Which statement is true about the prisoner's dilemma? - ANSWER>>It is difficult to maintain cooperation
How does oligopoly represent a prisoner's dilemma? - ANSWER>>It depicts the difficulty in maintaining cooperative agreements 1 / 4
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What is used to measure the opportunity cost of one good when it is being compared to another good? - ANSWER>>The slope of the budget constraint
What will an increase in income cause to a consumer's budget constraint? - ANSWER>>A shift outward, parallel to its initial position
What happens to the nominal interest rate and the quantity of money if the Federal Reserve lowers the reserve requirement? Choose two answers. - ANSWER>>- The interest rate decreases
- The quantity of money increases
What happens to the market equilibrium quantity and price if supply increases and demand remains the same? Choose 2 answers. - ANSWER>>- Quantity Increases
- Price Decreases
Which factor influences price elasticity of demand? - ANSWER>>Availability of close substitutes
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3 What concept measures how much the quantity supplied responds to price? - ANSWER>>Price elasticity of supply
Which type of market operation does the federal Reserve use to increase the money supply when it buys bonds from the public in the nation's bond market? - ANSWER>>Open Market Operation
If the government increases purchases by $10 billion, the aggregate demand for goods and services could rise by more than $10 billion. What effect does this illustrate? - ANSWER>>Crowding out effect
Which fiscal polices will result in a rightward shift of the aggregate demand curve? - ANSWER>>Lowering the reserve requirement
Which statement describe gross domestic product (GDP)? - ANSWER>>GDP is the most used measure of a country's economic wellbeing
A man is willing to pay $300 for a pair of boots and he purchases the boots for $200.What does this indicate? - ANSWER>>The consumer surplus will be $100
A U.S. citizen has been living and working in Canada for the last 10 years. Where is the value of the individual's production counted? - ANSWER>>U.S. GN and Canada's GNP
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4 What is the effect of an import tariff on the domestic price of bananas? - ANSWER>>The price increases
Classify the effect of a tariff on each situation as increases or decreases. Answer options may be used more than once or not at all. - ANSWER>>a. Demand for foreign produced goods - DECREASING
- The domestic quantity of goods produced - INCREASING
- Domestic quantity demanded - INCREASING
- Domestic government revenue - INCREASING
Which two phrases represent the views of globalization? Choose two answers. - ANSWER>>- A pendulum that swings from one extreme to another.
- A competition among key financial centers and markets.
What are two trade barriers? - ANSWER>>- Nontariffs
- Tarriffs
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