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

1. What are key features of an oligopoly? (Choose THREE.)

A) Firms are independent of one another, like competitive firms.
B) The actions of any one seller have little impact on others' profits.
C) There is little motivation for cooperation between firms.
D) There are a few sellers.
E) The actions of any one seller can have a large impact on the profits of other sellers.
F) Firms in an oligopoly are interdependent in ways competitive firms are not.

2. In a monopoly, which statements are likely true? (Choose TWO.)

A) One seller offers a unique good with no close substitutes
B) There are barriers to entry into the market
C) Firms are price takers
D) Marginal revenue equals price
E) Entry is free in the long run

3. What are examples of equity modes of entry? (Choose THREE.)

A) Greenfield investments
B) Licensing
C) Franchising
D) Acquisitions
E) Strategic alliances

4. What is one characteristic of a market shortage?

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

5. Which characteristics are attributed to a democracy? (Choose THREE.)

A) It concentrates power in a single ruling party.
B) It prohibits private ownership.
C) It contains political risk that is lower than in other political systems.
D) It extends the right to organize economically to domestic and foreign firms.
E) It prizes freedom of expression and organization.

Solutions: