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WGU Global Economics for Managers (C211, UZC2) Sample Questions:

1. A country has experienced a decrease in inflation. What is the effect on the country's currency exchange rate?

A) It depreciates
B) It has no effect
C) It becomes unstable
D) It increases

2. Which factors increase a country's currency exchange value? Choose two answers.

A) A fall in population
B) A rise in the interest rate
C) A rise in inflation
D) A fall in productivity
E) Political unrest
F) A rise in productivity

3. If the demand for a good is elastic, what is true?

A) Total revenue increases with a change in price in either direction.
B) Price and total revenue move in the same direction.
C) The quantity demanded responds substantially to changes in the price.
D) The quantity demanded responds only slightly to changes in the price.

4. How does the Federal Reserve lower the federal funds rate?

A) By increasing taxes
B) By selling government bonds
C) By purchasing government bonds
D) By raising reserve requirements

5. Costs that do not vary with output quantity divided by the quantity of output is best described by which term?

A) Average fixed cost
B) Total cost
C) Average variable cost
D) Marginal cost

Solutions: