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

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

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

2. When supply increases and demand stays the same, what happens to the equilibrium point of price and quantity?

A) Quantity increases
B) Price remains the same
C) Quantity decreases
D) Price increases

3. What is an example of a company that is market-seeking?

A) A company searching for a location where there is a high interest in camping supplies
B) A company searching for a location where rocks and minerals can be mined
C) A company searching for a location where a specific type of plastic is low-cost and readily available
D) A company searching for a location where the cost of unskilled labor is low

4. What is one of the three primary types of foreign exchange transactions?

A) Arbitrage transactions
B) Forward transactions
C) Hedging transactions
D) Spot transactions

5. The formula "fixed costs (FC) + variable costs (VC)" represents which quantity?

A) Implicit cost
B) Total cost
C) Average cost
D) Marginal cost

Solutions: