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

1. What measures how the quantity demanded of one good responds to a change in the price of another good?

A) Price elasticity of demand
B) Cross-price elasticity of demand
C) Quantity elasticity of demand
D) Equilibrium elasticity of demand

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

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

3. Which transaction is included in the consumption component of GDP?

A) A person pays for a haircut
B) A company exports automobiles
C) A firm purchases new machinery
D) A government builds a highway

4. What is a characteristic of common law as compared to civil law?

A) Common law relies primarily on comprehensive statutes and codes.
B) Common law is more reliant on precedents from previous judicial decisions.
C) Common law is based on religious teachings.
D) Common law minimizes the role of judges.

5. What are characteristics of a market economy? (Choose TWO.)

A) Supply, demand, and pricing are planned by the government.
B) It found a near ideal in China and the former Soviet Union during communism.
C) It was first noted by Adam Smith in The Wealth of Nations in 1776.
D) It is characterized by the "invisible hand" of market forces.
E) Factors of production are government-owned or state-owned.
F) It is defined by a government taking the authoritative role in the economy.

Solutions: