WGU C211 EXAM PREP TEST BANK
UPDATED QUESTIONS AND SOLUTIONS
2026
◉ Civil law
Answer: Law that uses comprehensive statutes and codes as a
primary means to form legal judgments.
◉ Common law
Answer: Law shaped by precedents and traditions from previous
judicial decisions.
◉ Theocratic law
Answer: A legal system based on religious teachings.
◉ How do civil, common and theocratic laws compare?
Answer: Relative to civil law, common law has more flexibility
because judges have to resolve specific disputes based on their
interpretation of the law. Civil law has less flexibility because judges
only have the power to apply the law.
◉ Property right
,Answer: The legal rights to use an economic resource and to derive
income and benefits from it. Can be used as collateral for starting a
firm; not as common in developing countries, therefore hindering
economic growth.
◉ Intellectual property right
Answer: Rights associated with the ownership. They primarily
include rights associated with patents, copyrights, and trademarks.
◉ Market economy
Answer: One that is characterized by the "invisible hand" of market
forces-all factors of production should be privately owned.
◉ Command economy
Answer: One that is defined by a government taking all factors of
production to be government-owned or state-owned, and all supply,
demand, and pricing are planned by the government.
◉ Mixed economy
Answer: One has elements of both a market economy and a
command economy. It boils down to the relative distribution of
market forces versus command forces.
◉ Indifference curve
, Answer: A curve that shows consumption bundles that give the
consumer the same level of satisfaction (i.e. combinations of pizza
and Pepsi with which the consumer is equally satisfied.)
◉ Four properties of an indifference curve
Answer: (1) Higher indifference curves are preferred to lower ones.
People usually prefer to consume more goods rather than less.
(2) Indifference curves are downward sloping. The slope of an
indifference curve reflects the rate at which the consumer is willing
to substitute one good for the other.
(3) Indifference curves do not cross.
(4) Indifference curves are bowed inward. The slope of an
indifference curve is the marginal rate of substitution—the rate at
which the consumer is willing to trade off one good for the other.
◉ Marginal rate of substitution.
Answer: The rate at which the consumer is willing to trade off one
good for the other (i.e. how much Pepsi the consumer requires to be
compensated for a one-unit reduction in pizza consumption)
◉ Budget constraint
Answer: The consumption bundles that the consumer can afford.
UPDATED QUESTIONS AND SOLUTIONS
2026
◉ Civil law
Answer: Law that uses comprehensive statutes and codes as a
primary means to form legal judgments.
◉ Common law
Answer: Law shaped by precedents and traditions from previous
judicial decisions.
◉ Theocratic law
Answer: A legal system based on religious teachings.
◉ How do civil, common and theocratic laws compare?
Answer: Relative to civil law, common law has more flexibility
because judges have to resolve specific disputes based on their
interpretation of the law. Civil law has less flexibility because judges
only have the power to apply the law.
◉ Property right
,Answer: The legal rights to use an economic resource and to derive
income and benefits from it. Can be used as collateral for starting a
firm; not as common in developing countries, therefore hindering
economic growth.
◉ Intellectual property right
Answer: Rights associated with the ownership. They primarily
include rights associated with patents, copyrights, and trademarks.
◉ Market economy
Answer: One that is characterized by the "invisible hand" of market
forces-all factors of production should be privately owned.
◉ Command economy
Answer: One that is defined by a government taking all factors of
production to be government-owned or state-owned, and all supply,
demand, and pricing are planned by the government.
◉ Mixed economy
Answer: One has elements of both a market economy and a
command economy. It boils down to the relative distribution of
market forces versus command forces.
◉ Indifference curve
, Answer: A curve that shows consumption bundles that give the
consumer the same level of satisfaction (i.e. combinations of pizza
and Pepsi with which the consumer is equally satisfied.)
◉ Four properties of an indifference curve
Answer: (1) Higher indifference curves are preferred to lower ones.
People usually prefer to consume more goods rather than less.
(2) Indifference curves are downward sloping. The slope of an
indifference curve reflects the rate at which the consumer is willing
to substitute one good for the other.
(3) Indifference curves do not cross.
(4) Indifference curves are bowed inward. The slope of an
indifference curve is the marginal rate of substitution—the rate at
which the consumer is willing to trade off one good for the other.
◉ Marginal rate of substitution.
Answer: The rate at which the consumer is willing to trade off one
good for the other (i.e. how much Pepsi the consumer requires to be
compensated for a one-unit reduction in pizza consumption)
◉ Budget constraint
Answer: The consumption bundles that the consumer can afford.
