WGU C211 Global Economics for
Managers (OA) Exam Questions And
Answers 2023/2024 graded A+.
**Q1: The law of demand states that, all else equal, an increase in the
price of a good will cause:**
A. An increase in demand
B. A decrease in demand
C. An increase in quantity demanded
D. A decrease in quantity demanded
**Answer: D**
**Rationale:** The law of demand describes an inverse relationship
between price and **quantity demanded**. A price change causes a
movement along the demand curve. A change in demand is a shift of
the entire curve caused by non-price factors .
**Q2: Which of the following would cause the supply curve for a
product to shift to the left?**
A. A decrease in the cost of production
B. A technological advancement
C. An increase in the cost of raw materials
D. An increase in consumer income
,**Answer: C**
**Rationale:** A supply curve shift to the left indicates a decrease in
supply. Higher input costs make production less profitable at every
price, reducing supply. Technological advancements and lower costs
would shift the curve right .
**Q3: When the price of a good is below its equilibrium price, there will
be a:**
A. Surplus and upward pressure on price
B. Shortage and upward pressure on price
C. Surplus and downward pressure on price
D. Shortage and downward pressure on price
**Answer: B**
**Rationale:** A price below equilibrium creates excess demand (a
shortage). Competition among buyers will bid the price up towards
equilibrium .
**Q4: If the price of a good falls and total revenue decreases, demand
is:**
A. Elastic
B. Inelastic
C. Unit elastic
, D. Perfectly elastic
**Answer: B**
**Rationale:** When demand is inelastic, the percentage change in
quantity demanded is less than the percentage change in price. So, a
price decrease leads to a proportionally smaller increase in quantity,
causing total revenue (Price x Quantity) to fall .
**Q5: The income elasticity of demand for an inferior good is:**
A. Greater than 1
B. Equal to 0
C. Positive but less than 1
D. Negative
**Answer: D**
**Rationale:** For an inferior good, demand falls as consumer income
rises. This makes the income elasticity of demand a negative number.
Normal goods have positive income elasticity .
**Q6: Gross Domestic Product (GDP) is defined as the market value of
all:**
A. Final goods and services produced within a country in a given period
B. Goods and services sold in a country in a given period
Managers (OA) Exam Questions And
Answers 2023/2024 graded A+.
**Q1: The law of demand states that, all else equal, an increase in the
price of a good will cause:**
A. An increase in demand
B. A decrease in demand
C. An increase in quantity demanded
D. A decrease in quantity demanded
**Answer: D**
**Rationale:** The law of demand describes an inverse relationship
between price and **quantity demanded**. A price change causes a
movement along the demand curve. A change in demand is a shift of
the entire curve caused by non-price factors .
**Q2: Which of the following would cause the supply curve for a
product to shift to the left?**
A. A decrease in the cost of production
B. A technological advancement
C. An increase in the cost of raw materials
D. An increase in consumer income
,**Answer: C**
**Rationale:** A supply curve shift to the left indicates a decrease in
supply. Higher input costs make production less profitable at every
price, reducing supply. Technological advancements and lower costs
would shift the curve right .
**Q3: When the price of a good is below its equilibrium price, there will
be a:**
A. Surplus and upward pressure on price
B. Shortage and upward pressure on price
C. Surplus and downward pressure on price
D. Shortage and downward pressure on price
**Answer: B**
**Rationale:** A price below equilibrium creates excess demand (a
shortage). Competition among buyers will bid the price up towards
equilibrium .
**Q4: If the price of a good falls and total revenue decreases, demand
is:**
A. Elastic
B. Inelastic
C. Unit elastic
, D. Perfectly elastic
**Answer: B**
**Rationale:** When demand is inelastic, the percentage change in
quantity demanded is less than the percentage change in price. So, a
price decrease leads to a proportionally smaller increase in quantity,
causing total revenue (Price x Quantity) to fall .
**Q5: The income elasticity of demand for an inferior good is:**
A. Greater than 1
B. Equal to 0
C. Positive but less than 1
D. Negative
**Answer: D**
**Rationale:** For an inferior good, demand falls as consumer income
rises. This makes the income elasticity of demand a negative number.
Normal goods have positive income elasticity .
**Q6: Gross Domestic Product (GDP) is defined as the market value of
all:**
A. Final goods and services produced within a country in a given period
B. Goods and services sold in a country in a given period
