WGU C211 GLOBAL ECONOMICS COMPREHENSIVE
QUESTIONS AND VERIFIED SOLUTIONS 2024 UPDATE
GRADED A+ ALL PASSED!!
Which of the following is a consequence of a
country imposing a tariff on imported goods? - (correct answer) The demand for
foreign produced goods
decreases
Suppose that the United States imposes a
tariff on avocados imported from Mexico.
What impact will this have on the price paid
for avocados by United States citizens? - (correct answer) The price will increase.
.
Suppose that the United States imposes a
tariff on salt. What impact might this tariff
have on the price for domestic consumers? - (correct answer) Consumers will pay a
higher price.
Applying a tariff to coconuts will have the
following effect: - (correct answer) Increase the domestic price of
coconuts.
Which of the following is NOT a restriction to
trade? - (correct answer) Free trade areas.
What is the significant difference between an
import quota and a tariff? - (correct answer) A tariff raises revenue for the
government and an import quota creates surplus for
those who obtain licenses to import.
Suppose that the price of a good increases (all
else held constant). Which of the following
would happen along with the change in price? - (correct answer) Consumer surplus
would decrease.
Suppose that Bob goes to the market and is
willing to pay $500 for a new chainsaw. Bob is
able to find the chainsaw for only $400. Which
of the following follows from Bob's
circumstance? - (correct answer) His consumer surplus is $100.
,Which statement is true of consumer surplus? - (correct answer) Consumer surplus
represents value to
buyers in excess of the price paid for the product.
Which statement is true? - (correct answer) Total surplus is the sum of consumer
and
producer surplus and is graphically represented as the
area between the supply and demand curves up to the
equilibrium quantity.
Suppose that Bob lives in the United States,
but has been working in Mexico for the last 5 years. Where is the value of Bob's
production
counted during the last 5 years? - (correct answer) U.S. GNP and Mexico's GDP.
Which of the following statements describes
gross domestic product (GDP)? - (correct answer) GDP is the most used measure
of a
country's economic wellbeing.
Which of the following is an investment
included in the gross domestic product (GDP)
measure? - (correct answer) Spending on new residential
construction.
Gross Domestic Product (GDP) measures
which of the following? - (correct answer) Market value of final goods and services
produced within a country in a given period of time.
Which item is NOT part of GDP? - (correct answer) Purchasing a used hairdryer.
What is the key distinction between real and
nominal GDP? - (correct answer) Real GDP measures production not
affected by changes in prices while nominal GDP
measures production measured at current prices.
What is the change in total cost equal to in the
marginal cost equation? - (correct answer) Marginal cost multiplied by change in
quantity.
Fixed costs equal: - (correct answer) Total costs minus variable costs
Economic profit is distinct from accounting
profit because: - (correct answer) Economic profit incorporates both explicit
and implicit costs.
, Total costs include: - (correct answer) Variable costs plus fixed costs.
Marginal costs consider: - (correct answer) The increase in total cost arising from an
extra unit of production.
What response best describes the relationship
between marginal costs and total costs? - (correct answer) Whenever marginal cost
is less than
average total cost, average total cost is falling.
Which statement is true about productivity? - (correct answer) The value of marginal
product of labor
equals wage in a competitive firm.
A production function expresses the
relationship between: - (correct answer) Quantity of resource inputs and
product/service outputs.
Opportunity costs include: - (correct answer) The income the entrepreneur could
have
earned working for an employer.
Economists and decision makers study and
then make decisions or judgments based on
(select best answer): - (correct answer) Marginal analysis.
The primary reason that the marginal cost
curve declines and then increases is: - (correct answer) Firms experience increasing
marginal
product, then diminishing marginal product.
Which of the following statements is
accurate? - (correct answer) Marginal costs eventually rise with the
quantity of output.
Consider the following example: A perfectly
competitive firm finds that at current
production levels marginal cost is greater
than marginal revenue. What action should
this firm take in order to pursue the
maximization of profit? - (correct answer) Decrease the target output.
A competitive firm is characterized by: - (correct answer) Trading of identical
products.
Competitive firms experience marginal
QUESTIONS AND VERIFIED SOLUTIONS 2024 UPDATE
GRADED A+ ALL PASSED!!
Which of the following is a consequence of a
country imposing a tariff on imported goods? - (correct answer) The demand for
foreign produced goods
decreases
Suppose that the United States imposes a
tariff on avocados imported from Mexico.
What impact will this have on the price paid
for avocados by United States citizens? - (correct answer) The price will increase.
.
Suppose that the United States imposes a
tariff on salt. What impact might this tariff
have on the price for domestic consumers? - (correct answer) Consumers will pay a
higher price.
Applying a tariff to coconuts will have the
following effect: - (correct answer) Increase the domestic price of
coconuts.
Which of the following is NOT a restriction to
trade? - (correct answer) Free trade areas.
What is the significant difference between an
import quota and a tariff? - (correct answer) A tariff raises revenue for the
government and an import quota creates surplus for
those who obtain licenses to import.
Suppose that the price of a good increases (all
else held constant). Which of the following
would happen along with the change in price? - (correct answer) Consumer surplus
would decrease.
Suppose that Bob goes to the market and is
willing to pay $500 for a new chainsaw. Bob is
able to find the chainsaw for only $400. Which
of the following follows from Bob's
circumstance? - (correct answer) His consumer surplus is $100.
,Which statement is true of consumer surplus? - (correct answer) Consumer surplus
represents value to
buyers in excess of the price paid for the product.
Which statement is true? - (correct answer) Total surplus is the sum of consumer
and
producer surplus and is graphically represented as the
area between the supply and demand curves up to the
equilibrium quantity.
Suppose that Bob lives in the United States,
but has been working in Mexico for the last 5 years. Where is the value of Bob's
production
counted during the last 5 years? - (correct answer) U.S. GNP and Mexico's GDP.
Which of the following statements describes
gross domestic product (GDP)? - (correct answer) GDP is the most used measure
of a
country's economic wellbeing.
Which of the following is an investment
included in the gross domestic product (GDP)
measure? - (correct answer) Spending on new residential
construction.
Gross Domestic Product (GDP) measures
which of the following? - (correct answer) Market value of final goods and services
produced within a country in a given period of time.
Which item is NOT part of GDP? - (correct answer) Purchasing a used hairdryer.
What is the key distinction between real and
nominal GDP? - (correct answer) Real GDP measures production not
affected by changes in prices while nominal GDP
measures production measured at current prices.
What is the change in total cost equal to in the
marginal cost equation? - (correct answer) Marginal cost multiplied by change in
quantity.
Fixed costs equal: - (correct answer) Total costs minus variable costs
Economic profit is distinct from accounting
profit because: - (correct answer) Economic profit incorporates both explicit
and implicit costs.
, Total costs include: - (correct answer) Variable costs plus fixed costs.
Marginal costs consider: - (correct answer) The increase in total cost arising from an
extra unit of production.
What response best describes the relationship
between marginal costs and total costs? - (correct answer) Whenever marginal cost
is less than
average total cost, average total cost is falling.
Which statement is true about productivity? - (correct answer) The value of marginal
product of labor
equals wage in a competitive firm.
A production function expresses the
relationship between: - (correct answer) Quantity of resource inputs and
product/service outputs.
Opportunity costs include: - (correct answer) The income the entrepreneur could
have
earned working for an employer.
Economists and decision makers study and
then make decisions or judgments based on
(select best answer): - (correct answer) Marginal analysis.
The primary reason that the marginal cost
curve declines and then increases is: - (correct answer) Firms experience increasing
marginal
product, then diminishing marginal product.
Which of the following statements is
accurate? - (correct answer) Marginal costs eventually rise with the
quantity of output.
Consider the following example: A perfectly
competitive firm finds that at current
production levels marginal cost is greater
than marginal revenue. What action should
this firm take in order to pursue the
maximization of profit? - (correct answer) Decrease the target output.
A competitive firm is characterized by: - (correct answer) Trading of identical
products.
Competitive firms experience marginal
