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

1. What is the bandwagon effect?

A) The tendency of prices to return to equilibrium
B) Investors moving independently based on private information
C) Government intervention to stabilize markets
D) The movement of investors in the same direction at the same time

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

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

3. What is purchasing power parity (PPP)?

A) The gain from taking advantage of inefficient exchange rates
B) The idea that a country ' s exchange rate is an indicator of socioeconomic well-being
C) A theory suggesting that the price for identical products sold in different countries must be the same in the absence of trade barriers
D) The movement of investors in the same direction at the same time

4. What are examples of intellectual property? (Choose TWO.)

A) A subsidy
B) A tariff
C) A trademark
D) A patent

5. What measures how the quantity demanded of one good responds to a change in the price of another good?

A) Cross-price elasticity of demand
B) Equilibrium elasticity of demand
C) Quantity elasticity of demand
D) Price elasticity of demand

Solutions: