WGU C211 (2025) Actual Exam
Questions and Answers A+ Graded
A .company .is .looking .for .a .location .with .an .abundance .of .ground .breaking
.individuals, .firms .and .universities. .Which .type .of .strategic .goal .is .this
.company .demonstrating? .- .CORRECT .ANSWER .-Innovation-seeking
A .farmer .sells .wheat .in .a .perfectly .competitive .market. .Which .action .should .the
.farmer .take .to .maximize .profits? .- .CORRECT .ANSWER .-Produce .the .quantity
.where .the .price .equals .the .farmer's .marginal .cost
A .nation .ends .a .tariff .on .bananas, .which .is .an .imported .product. .What .will .be
.the .effect .on .banana .prices .within .the .nation? .- .CORRECT .ANSWER .-The .price
.will .match .the .global .market .price
A .painter .spends .$200 .on .paint. .He .then .bills .the .homeowner .$1000 .to .cover
.his .time .and .his .expenses. .What .is .the .amount .of .these .transactions .that .is
.added .to .the .gross .domestic .product .(GDP)? .- .CORRECT .ANSWER .-$1000
A .U.S. .state .purchases .a .fleet .of .new .highway .patrol .vehicles .manufactured .in
.Japan. .Which .two .statements .correctly .describe .how .the .components .of .U.S.
.GDP .are .affected? .- .CORRECT .ANSWER .-Net .exports .decrease, .government
.expenditures .increase
Absolute .Advantage .- .CORRECT .ANSWER .-involves .being .more .efficient .than
.anyone .else .in .the .production .of .any .good .or .service
Accounting .Profit .- .CORRECT .ANSWER .-TR .- .Explicit .Costs
Are .fundamental .and .comprehensive .changes .introduced .to .the .formal .and
.informal .rules .that .affect .firms .and .players .- .CORRECT .ANSWER .-Institutional
.transitions
Are .popularly .know .as .the ."rules .of .the .game" .- .CORRECT .ANSWER .-
Institutions
Civil .Law .- .CORRECT .ANSWER .-Uses .comprehensive .statuses .as .a .primary
.means .to .form .legal .judgements
Common .Law .- .CORRECT .ANSWER .-is .shaped .by .precedents .and .traditions
.from .previous .judicial .decisions
, Comparative .Advantage .- .CORRECT .ANSWER .-the .relative .(not .absolute)
.advantage .in .one .economic .activity .that .one .nation .enjoys .in .comparison .with
.other .nations
Consumer .Surplus .- .CORRECT .ANSWER .-Willingness .to .Pay .(WTP) .- .Price
Deadweight .cost .- .CORRECT .ANSWER .-Net .losses .that .occur .in .an .economy
.as .the .result .of .tariffs
Economic .Costs .- .CORRECT .ANSWER .-Explicit .Costs .+ .Implicit .Costs
Economic .gains .come .from .international .trade .because .one .country's .exported
.goods, .services .or .other .items .are .unique, .valuable, .and .difficult .to .duplicate
.to .importing .country .- .CORRECT .ANSWER .-Resource-based .view
Equilibrium .Market .- .CORRECT .ANSWER .-When .a .market .is .in .equilibrium, .the
.buyers .are .those .with .the .highest .WTP .and .the .sellers .are .those .with .the
.lowest .costs
How .does .the .prisoner's .dilemma .help .in .understanding .company .behavior .in
.an .oligopoly? .- .CORRECT .ANSWER .-Companies .lack .strategic .thinking
How .is .consumer .surplus .represented .on .a .graph? .- .CORRECT .ANSWER .-The
.area .below .the .demand .curve .and .above .the .price
In .addition .to .encouraging .efficiency, .why .might .a .government .intervene .in .a
.market? .- .CORRECT .ANSWER .-To .increase .profits
In .which .type .of .political .system .do .citizens .elect .representatives .to .govern .the
.country .on .their .behalf? .- .CORRECT .ANSWER .-Democracy
Includes .laws, .regulations .and .rules .- .CORRECT .ANSWER .-Formal .Institutions
Includes .norms, .cultures .and .ethics .- .CORRECT .ANSWER .-Informal .Institutions
Is .made .up .of .formal .and .informal .institutions .governing .individual .and .firm
.behavior .- .CORRECT .ANSWER .-Institutional .Framework
Key .functions .of .institutions: .- .CORRECT .ANSWER .-Reduce .uncertainty, .curtail
.transaction .costs .and .combat .opportunism
Market .Economy .- .CORRECT .ANSWER .-A .term .referring .to .a .system
.characterized .by .the ."invisible .hand" .of .market .forces: .government .takes .a
.hands-off .approach .known .as .the .laissez .faire
Mixed .Economy .- .CORRECT .ANSWER .-An .economic .system .that .has .elements
.of .both .a .market .economy .and .a .command .economy
Questions and Answers A+ Graded
A .company .is .looking .for .a .location .with .an .abundance .of .ground .breaking
.individuals, .firms .and .universities. .Which .type .of .strategic .goal .is .this
.company .demonstrating? .- .CORRECT .ANSWER .-Innovation-seeking
A .farmer .sells .wheat .in .a .perfectly .competitive .market. .Which .action .should .the
.farmer .take .to .maximize .profits? .- .CORRECT .ANSWER .-Produce .the .quantity
.where .the .price .equals .the .farmer's .marginal .cost
A .nation .ends .a .tariff .on .bananas, .which .is .an .imported .product. .What .will .be
.the .effect .on .banana .prices .within .the .nation? .- .CORRECT .ANSWER .-The .price
.will .match .the .global .market .price
A .painter .spends .$200 .on .paint. .He .then .bills .the .homeowner .$1000 .to .cover
.his .time .and .his .expenses. .What .is .the .amount .of .these .transactions .that .is
.added .to .the .gross .domestic .product .(GDP)? .- .CORRECT .ANSWER .-$1000
A .U.S. .state .purchases .a .fleet .of .new .highway .patrol .vehicles .manufactured .in
.Japan. .Which .two .statements .correctly .describe .how .the .components .of .U.S.
.GDP .are .affected? .- .CORRECT .ANSWER .-Net .exports .decrease, .government
.expenditures .increase
Absolute .Advantage .- .CORRECT .ANSWER .-involves .being .more .efficient .than
.anyone .else .in .the .production .of .any .good .or .service
Accounting .Profit .- .CORRECT .ANSWER .-TR .- .Explicit .Costs
Are .fundamental .and .comprehensive .changes .introduced .to .the .formal .and
.informal .rules .that .affect .firms .and .players .- .CORRECT .ANSWER .-Institutional
.transitions
Are .popularly .know .as .the ."rules .of .the .game" .- .CORRECT .ANSWER .-
Institutions
Civil .Law .- .CORRECT .ANSWER .-Uses .comprehensive .statuses .as .a .primary
.means .to .form .legal .judgements
Common .Law .- .CORRECT .ANSWER .-is .shaped .by .precedents .and .traditions
.from .previous .judicial .decisions
, Comparative .Advantage .- .CORRECT .ANSWER .-the .relative .(not .absolute)
.advantage .in .one .economic .activity .that .one .nation .enjoys .in .comparison .with
.other .nations
Consumer .Surplus .- .CORRECT .ANSWER .-Willingness .to .Pay .(WTP) .- .Price
Deadweight .cost .- .CORRECT .ANSWER .-Net .losses .that .occur .in .an .economy
.as .the .result .of .tariffs
Economic .Costs .- .CORRECT .ANSWER .-Explicit .Costs .+ .Implicit .Costs
Economic .gains .come .from .international .trade .because .one .country's .exported
.goods, .services .or .other .items .are .unique, .valuable, .and .difficult .to .duplicate
.to .importing .country .- .CORRECT .ANSWER .-Resource-based .view
Equilibrium .Market .- .CORRECT .ANSWER .-When .a .market .is .in .equilibrium, .the
.buyers .are .those .with .the .highest .WTP .and .the .sellers .are .those .with .the
.lowest .costs
How .does .the .prisoner's .dilemma .help .in .understanding .company .behavior .in
.an .oligopoly? .- .CORRECT .ANSWER .-Companies .lack .strategic .thinking
How .is .consumer .surplus .represented .on .a .graph? .- .CORRECT .ANSWER .-The
.area .below .the .demand .curve .and .above .the .price
In .addition .to .encouraging .efficiency, .why .might .a .government .intervene .in .a
.market? .- .CORRECT .ANSWER .-To .increase .profits
In .which .type .of .political .system .do .citizens .elect .representatives .to .govern .the
.country .on .their .behalf? .- .CORRECT .ANSWER .-Democracy
Includes .laws, .regulations .and .rules .- .CORRECT .ANSWER .-Formal .Institutions
Includes .norms, .cultures .and .ethics .- .CORRECT .ANSWER .-Informal .Institutions
Is .made .up .of .formal .and .informal .institutions .governing .individual .and .firm
.behavior .- .CORRECT .ANSWER .-Institutional .Framework
Key .functions .of .institutions: .- .CORRECT .ANSWER .-Reduce .uncertainty, .curtail
.transaction .costs .and .combat .opportunism
Market .Economy .- .CORRECT .ANSWER .-A .term .referring .to .a .system
.characterized .by .the ."invisible .hand" .of .market .forces: .government .takes .a
.hands-off .approach .known .as .the .laissez .faire
Mixed .Economy .- .CORRECT .ANSWER .-An .economic .system .that .has .elements
.of .both .a .market .economy .and .a .command .economy
