WGU
Global-Economics-for-Managers
Q1:
What is deadweight cost?
○
A
A government payment to a domestic firm○
B
A tariff levied on imports that are selling below cost in order to unfairly drive domestic firms out of business○
C
The lost potential from pursuing one activity at the expense of another, given the alternatives○
D
A net loss that occurs in an economy as a result of tariffs
WGU
Global-Economics-for-Managers
Q2:
In a monopoly, which statements are likely true? (Choose TWO.)
☐
A
One seller offers a unique good with no close substitutes☐
B
There are barriers to entry into the market☐
C
Firms are price takers☐
D
Marginal revenue equals price☐
E
Entry is free in the long run
WGU
Global-Economics-for-Managers
Q3:
When supply increases and demand stays the same, what happens to the equilibrium point of price and quantity?
○
A
Quantity increases○
B
Price increases○
C
Price remains the same○
D
Quantity decreases
WGU
Global-Economics-for-Managers
Q4:
What are examples of intellectual property? (Choose TWO.)
☐
A
A patent☐
B
A trademark☐
C
A subsidy☐
D
A tariff
WGU
Global-Economics-for-Managers
Q5:
Which statement about consumer surplus is true?
○
A
It measures the well-being of sellers○
B
It is a good measure of economic well-being if policymakers want to satisfy buyers' preferences○
C
It represents government revenue○
D
It measures total production efficiency