WGU C211 Global Economics for Managers OA Exam
Comprehensive Resource To Help You Ace 2026-2027
Includes Frequently Tested Questions With
ELABORATED 100% Correct COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!!
Current Update!!
1. What is the fundamental basis for trade among nations?
a. Shortages or surpluses in nations that do not trade
b. Absolute advantage
c. Comparative advantage
d. Misguided economic policies - Correct Answer: Comparative
advantage
2. A tax on an imported good is called a
a. tariff.
b. quota.
c. supply tax.
d. trade tax. - Correct Answer: tariff.
3. In a simple circular-flow diagram, total income and total expenditure are
a. never equal because total income always exceeds total expenditure.
b. equal only when the government purchases no goods or services.
c. always equal because every transaction has a buyer and a seller.
, d. seldom equal because of the ongoing changes in an economy's
unemployment rate. - Correct Answer: always equal because
every transaction has a buyer and a seller.
4. GDP is defined as the
a. value of all final goods and services produced within a country in a
given period of time.
b. value of all final goods and services produced by the citizens of a
country, regardless of where they are living, in a given period of time.
c. value of all goods and services produced by the citizens of a country,
regardless of where they are living, in a given period of time.
d. value of all goods and services produced within a country in a given
period of time. - Correct Answer: value of all final goods and
services produced within a country in a given period of time.
5. Which of the following is included in GDP?
a. Neither the market value of owner-occupied housing services nor the
market value of rental housing services
b. The market value of rental housing services, but not the market value
of owner-occupied housing services
c. Both the market value of rental housing services and the market
value of owner-occupied housing services
d. The market value of owner-occupied housing services, but not the
market value of rental housing services - Correct Answer: Both
the market value of rental housing services and the market value of
owner-occupied housing services
6. A farmer produces oranges and sells them to Fresh Juice, which makes
orange juice. The oranges produced by the farmer are called
a. final goods.
, b. inventory goods.
c. intermediate goods.
d. transitory goods. - Correct Answer: intermediate goods.
7. For the purpose of calculating GDP, investment is spending on
a. capital equipment, inventories, and structures, excluding household
purchases of new housing.
b. capital equipment, inventories, and structures, including household
purchases of new housing.
c. stocks, bonds, and other financial assets.
d. real estate and financial assets such as stocks and bonds. -
Correct Answer: capital equipment, inventories, and structures,
including household purchases of new housing.
8. The value of goods added to a firm's inventory in a certain year is treated as
a. spending on durable goods, since the goods could not be inventoried
unless they were durable.
b. investment, since GDP aims to measure the value of the economy's
production that year.
c. consumption, since the goods will be sold to consumers in another
period.
d. intermediate goods, and so is not included in that year's GDP. -
Correct Answer: investment, since GDP aims to measure the value of
the economy's production that year.
9. Equilibrium quantity must decrease when demand
a. increases and supply does not change, when demand does not
change and supply decreases, and when both demand and supply
decrease.
, b. decreases and supply does not change, when demand does not
change and supply increases, and when both demand and supply
decrease.
c. decreases and supply does not change, when demand does not
change and supply decreases, and when both demand and supply
decrease.
d. increases and supply does not change, when demand does not
change and supply increases, and when both demand and supply
decrease. - Correct Answer: decreases and supply does not
change, when demand does not change and supply decreases, and
when both demand and supply decrease.
10.If the demand for a product increases, then we would expect equilibrium
price
a. to decrease and equilibrium quantity to increase.
b. and equilibrium quantity both to decrease.
c. to increase and equilibrium quantity to decrease.
d. and equilibrium quantity both to increase. - Correct Answer: and
equilibrium quantity both to increase.
11.Suppose that demand for a good increases and, at the same time, supply of
the good decreases. What would happen in the market for the good?
a. Equilibrium price would decrease, but the impact on equilibrium
quantity would be ambiguous.
b. Equilibrium quantity would decrease, but the impact on equilibrium
price would be ambiguous.
c. Equilibrium quantity would increase, but the impact on equilibrium
price would be ambiguous.
d. Equilibrium price would increase, but the impact on equilibrium
quantity would be ambiguous. - Correct Answer: Equilibrium
Comprehensive Resource To Help You Ace 2026-2027
Includes Frequently Tested Questions With
ELABORATED 100% Correct COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!!
Current Update!!
1. What is the fundamental basis for trade among nations?
a. Shortages or surpluses in nations that do not trade
b. Absolute advantage
c. Comparative advantage
d. Misguided economic policies - Correct Answer: Comparative
advantage
2. A tax on an imported good is called a
a. tariff.
b. quota.
c. supply tax.
d. trade tax. - Correct Answer: tariff.
3. In a simple circular-flow diagram, total income and total expenditure are
a. never equal because total income always exceeds total expenditure.
b. equal only when the government purchases no goods or services.
c. always equal because every transaction has a buyer and a seller.
, d. seldom equal because of the ongoing changes in an economy's
unemployment rate. - Correct Answer: always equal because
every transaction has a buyer and a seller.
4. GDP is defined as the
a. value of all final goods and services produced within a country in a
given period of time.
b. value of all final goods and services produced by the citizens of a
country, regardless of where they are living, in a given period of time.
c. value of all goods and services produced by the citizens of a country,
regardless of where they are living, in a given period of time.
d. value of all goods and services produced within a country in a given
period of time. - Correct Answer: value of all final goods and
services produced within a country in a given period of time.
5. Which of the following is included in GDP?
a. Neither the market value of owner-occupied housing services nor the
market value of rental housing services
b. The market value of rental housing services, but not the market value
of owner-occupied housing services
c. Both the market value of rental housing services and the market
value of owner-occupied housing services
d. The market value of owner-occupied housing services, but not the
market value of rental housing services - Correct Answer: Both
the market value of rental housing services and the market value of
owner-occupied housing services
6. A farmer produces oranges and sells them to Fresh Juice, which makes
orange juice. The oranges produced by the farmer are called
a. final goods.
, b. inventory goods.
c. intermediate goods.
d. transitory goods. - Correct Answer: intermediate goods.
7. For the purpose of calculating GDP, investment is spending on
a. capital equipment, inventories, and structures, excluding household
purchases of new housing.
b. capital equipment, inventories, and structures, including household
purchases of new housing.
c. stocks, bonds, and other financial assets.
d. real estate and financial assets such as stocks and bonds. -
Correct Answer: capital equipment, inventories, and structures,
including household purchases of new housing.
8. The value of goods added to a firm's inventory in a certain year is treated as
a. spending on durable goods, since the goods could not be inventoried
unless they were durable.
b. investment, since GDP aims to measure the value of the economy's
production that year.
c. consumption, since the goods will be sold to consumers in another
period.
d. intermediate goods, and so is not included in that year's GDP. -
Correct Answer: investment, since GDP aims to measure the value of
the economy's production that year.
9. Equilibrium quantity must decrease when demand
a. increases and supply does not change, when demand does not
change and supply decreases, and when both demand and supply
decrease.
, b. decreases and supply does not change, when demand does not
change and supply increases, and when both demand and supply
decrease.
c. decreases and supply does not change, when demand does not
change and supply decreases, and when both demand and supply
decrease.
d. increases and supply does not change, when demand does not
change and supply increases, and when both demand and supply
decrease. - Correct Answer: decreases and supply does not
change, when demand does not change and supply decreases, and
when both demand and supply decrease.
10.If the demand for a product increases, then we would expect equilibrium
price
a. to decrease and equilibrium quantity to increase.
b. and equilibrium quantity both to decrease.
c. to increase and equilibrium quantity to decrease.
d. and equilibrium quantity both to increase. - Correct Answer: and
equilibrium quantity both to increase.
11.Suppose that demand for a good increases and, at the same time, supply of
the good decreases. What would happen in the market for the good?
a. Equilibrium price would decrease, but the impact on equilibrium
quantity would be ambiguous.
b. Equilibrium quantity would decrease, but the impact on equilibrium
price would be ambiguous.
c. Equilibrium quantity would increase, but the impact on equilibrium
price would be ambiguous.
d. Equilibrium price would increase, but the impact on equilibrium
quantity would be ambiguous. - Correct Answer: Equilibrium
