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Test Global-Economics-for-Managers Question & Global-Economics-for-Managers Vce Torrent

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q10-Q15):

NEW QUESTION # 10
When the Federal Reserve decreases the money supply, what is the result?

A. The quantity of goods and services demanded for one specific price increases.
B. The quantity of goods and services demanded for any given price decreases.
C. The efficiency of market corrections is reduced.
D. The aggregate demand for imports increases.

Answer: B

Explanation:
When the Federal Reserve decreases the money supply, aggregate demand decreases because borrowing becomes more expensive and less credit is available. Option B is correct because the quantity of goods and services demanded at any given price level falls. A lower money supply tends to raise interest rates, which discourages consumer borrowing, business investment, and interest-sensitive purchases such as homes, vehicles, and capital equipment. This shifts the aggregate demand curve left. Option A is not the standard macroeconomic result. Option C is too narrow and incorrectly states that demand increases. Option D is also incorrect because contractionary monetary policy does not directly increase aggregate demand for imports.
For managers, tighter monetary policy can reduce sales forecasts, investment plans, and expansion opportunities.

NEW QUESTION # 11
When an import tariff is placed on footwear, which quantity increases?

A. Consumer surplus for footwear
B. Domestic demand for footwear
C. Producer surplus for footwear
D. The quantity of footwear imported

Answer: C

Explanation:
InGlobal Economics for Managers, animport tariffraises the domestic price of the imported good, making producer surplus for domestic producers increase, which makes option B correct.
When a tariff is imposed on imported footwear, foreign suppliers face higher costs, reducing imports.
Domestic producers benefit from reduced competition and higher market prices, allowing them to increase output and earn higher surplus.
Option A is incorrect because imports decrease. Option C is incorrect because higher prices reduce domestic demand. Option D is incorrect because consumer surplus falls due to higher prices and fewer choices.
Tariffs redistribute surplus from consumers to producers and the government, while also creating deadweight loss. Thus, option B is correct.

NEW QUESTION # 12
What is the Nash equilibrium?

A. An agreement among firms in a market over production and price
B. A situation in which economic actors interacting with one another each choose their best strategy from among all available strategies currently being used by said actors
C. A group of firms illegally acting in unison to improve profits or dominate a market
D. A particular situation between two entities that illustrates why cooperation is difficult to maintain even when it is mutually beneficial

Answer: B

Explanation:
A Nash equilibrium occurs when each participant in a strategic interaction chooses the best available strategy given the strategies chosen by others. Option C is correct because no actor has an incentive to change its strategy unilaterally once the equilibrium is reached. This concept is central to game theory and is especially useful in oligopoly analysis, where firms must consider how rivals will respond to pricing, output, advertising, or product decisions. Option A describes the prisoner's dilemma more specifically, which can produce a Nash equilibrium but is not the definition itself. Option B describes collusion or cartel behavior. Option D describes illegal coordinated action by firms. Managers use Nash equilibrium logic to anticipate competitor behavior and understand why mutually beneficial cooperation can be unstable.

NEW QUESTION # 13
What are features shared by monopolies and perfect competition? (Choose TWO.)

A. Price is greater than marginal cost.
B. Maximum profit occurs when marginal revenue equals marginal cost.
C. In the long run, new firms can easily enter the market.
D. The structure does not produce the welfare-maximizing level of output.
E. Firms earn economic profits in the short run.
F. In the long run, it is nearly impossible for new firms to enter.

Answer: B,E

Explanation:
In Global Economics for Managers , monopolies and perfectly competitive firms share two important features: profit maximization at MR = MC and the ability to earn economic profits in the short run , making options E and F correct.
Option E applies universally: all firms maximize profit where marginal revenue equals marginal cost , regardless of market structure. This decision rule guides output choices in both monopoly and perfect competition.
Option F is also correct because firms in both structures can earn economic profits in the short run . In perfect competition, short-run profits attract new entrants, while monopolies may sustain profits longer due to entry barriers.
Options A and B distinguish the two structures. Option C applies only to monopoly. Option D applies only to monopoly, not perfect competition.
Thus, options E and F correctly identify shared features.

NEW QUESTION # 14
Which statement about Federal Reserve lending to banks is true?

A. Banks set consumer interest rates at the discount rate.
B. Fed lending to banks follows an overall uptrend.
C. Banks pay the discount rate when borrowing funds from the Fed.
D. The discount rate is changed annually.

Answer: C

Explanation:
InGlobal Economics for Managers, banks that borrow directly from the Federal Reserve through the discount windowpay the discount rate, making option D correct. The discount rate is the interest rate the Fed charges banks for short-term loans.
Option A is incorrect because Fed lending fluctuates based on economic conditions. Option B is incorrect because the discount rate can be changed at any time. Option C is incorrect because consumer interest rates are market-determined, not set at the discount rate.
Thus, option D accurately describes Fed lending.

NEW QUESTION # 15
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