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

1. Which quantity is calculated using the formula variable costs (VC) + fixed costs (FC)?

A) Total cost (TC)
B) Implicit cost (IC)
C) Average variable cost (AVC)
D) Explicit cost (EC)

2. What is a tariff levied on imports that are selling below cost in order to unfairly drive domestic firms out of business?

A) Opportunity cost
B) Factor endowment
C) Antidumping duty
D) Deadweight cost

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

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

4. Which term best describes a market structure of limited competition in which the market is shared by a small number of sellers?

A) Perfect competition
B) Oligopoly
C) Monopoly
D) Monopolistic competition

5. What are common types of barriers to entry that can cause a monopoly? (Choose TWO.)

A) Perfect information
B) A single firm owning a key resource
C) Free entry and exit
D) Economies of scale in the production process
E) Elastic demand

Solutions: