WGU C211 GLOBAL ECONOMICS FOR MANAGERS OA EXAM-with 100% verified solutions-2023-2024
What is the primary purpose of establishing property rights?
To provide the right to the design of a new product.
Which economic system is utilized by most countries?
Mixed Economy
Which action should a perfectly competitive firm take if the marginal cost is greater than marginal revenue?
Decrease the Output
Which condition must be satisfied for a competitive firm to continue to produce in the short run?
Total revenue covers total variable costs
What will a competitive firm do in the short run if its average variable cost exceeds price?
It will shut down
How does the shape of a monopoly's demand curve compare to that of a perfectly competitive firm?
The monopoly's demand curve is downward sloping and the competitive firm's demand curve is horizontal.
Which price will a monopoly set?
Above marginal cost
Which condition determines the profit maximizing output for a monopolist?
Marginal revenue equals marginal cost
What is characteristic of monopolistic competition?
Easy Market Entry
Which statement is true about the prisoner's dilemma?
It is difficult to maintain cooperation
, How does oligopoly represent a prisoner's dilemma?
It depicts the difficulty in maintaining cooperative agreements
What is used to measure the opportunity cost of one good when it is being compared to another good?
The slope of the budget constraint
What will an increase in income cause to a consumer's budget constraint? A shift outward, parallel to its initial position
What happens to the nominal interest rate and the quantity of money if the Federal Reserve lowers the reserve requirement? Choose two answers.
- The interest rate decreases - The quantity of money increases
What happens to the market equilibrium quantity and price if supply increases and demand remains the same? Choose 2 answers.
- Quantity Increases - Price Decreases
Which factor influences price elasticity of demand?
Availability of close substitutes
What concept measures how much the quantity supplied responds to price? Price elasticity of supply
Which type of market operation does the federal Reserve use to increase the money supply when it buys bonds from the public in the nation's bond market?
Open Market Operation
If the government increases purchases by $10 billion, the aggregate demand for goods and services could rise by more than $10 billion. What effect does this
illustrate?
Crowding out effect
Which fiscal polices will result in a rightward shift of the aggregate demand curve? Lowering the reserve requirement
Which statement describe gross domestic product (GDP)?
GDP is the most used measure of a country's economic wellbeing
What is the primary purpose of establishing property rights?
To provide the right to the design of a new product.
Which economic system is utilized by most countries?
Mixed Economy
Which action should a perfectly competitive firm take if the marginal cost is greater than marginal revenue?
Decrease the Output
Which condition must be satisfied for a competitive firm to continue to produce in the short run?
Total revenue covers total variable costs
What will a competitive firm do in the short run if its average variable cost exceeds price?
It will shut down
How does the shape of a monopoly's demand curve compare to that of a perfectly competitive firm?
The monopoly's demand curve is downward sloping and the competitive firm's demand curve is horizontal.
Which price will a monopoly set?
Above marginal cost
Which condition determines the profit maximizing output for a monopolist?
Marginal revenue equals marginal cost
What is characteristic of monopolistic competition?
Easy Market Entry
Which statement is true about the prisoner's dilemma?
It is difficult to maintain cooperation
, How does oligopoly represent a prisoner's dilemma?
It depicts the difficulty in maintaining cooperative agreements
What is used to measure the opportunity cost of one good when it is being compared to another good?
The slope of the budget constraint
What will an increase in income cause to a consumer's budget constraint? A shift outward, parallel to its initial position
What happens to the nominal interest rate and the quantity of money if the Federal Reserve lowers the reserve requirement? Choose two answers.
- The interest rate decreases - The quantity of money increases
What happens to the market equilibrium quantity and price if supply increases and demand remains the same? Choose 2 answers.
- Quantity Increases - Price Decreases
Which factor influences price elasticity of demand?
Availability of close substitutes
What concept measures how much the quantity supplied responds to price? Price elasticity of supply
Which type of market operation does the federal Reserve use to increase the money supply when it buys bonds from the public in the nation's bond market?
Open Market Operation
If the government increases purchases by $10 billion, the aggregate demand for goods and services could rise by more than $10 billion. What effect does this
illustrate?
Crowding out effect
Which fiscal polices will result in a rightward shift of the aggregate demand curve? Lowering the reserve requirement
Which statement describe gross domestic product (GDP)?
GDP is the most used measure of a country's economic wellbeing
