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Title: Global-Economics-for-Managers Vce Files, Global-Economics-for-Managers Testing C [Print This Page]
Author: robhill181    Time: 5 hour before
Title: Global-Economics-for-Managers Vce Files, Global-Economics-for-Managers Testing C
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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q100-Q105):NEW QUESTION # 100
What are common types of barriers to entry that can cause a monopoly? (Choose TWO.)
Answer: A,D
Explanation:
InGlobal Economics for Managers, monopolies arise whenbarriers to entryprevent potential competitors from entering a market. Two common barriers areeconomies of scaleandgovernment-granted exclusive rights, making options B and E correct.
Economies of scaleoccur when average costs decline as output increases. In industries with very high fixed costs, a single large firm can produce at a lower cost than multiple smaller firms. This discourages entry because new firms cannot compete efficiently at small scales, leading to monopoly outcomes.
Government regulations granting exclusive production rights-such as patents, licenses, or exclusive franchises-also create monopolies by legally preventing competition. These barriers are intentional and often justified to encourage innovation or ensure service provision.
Option A does not restrict entry. Option C may limit foreign competition but does not necessarily create a monopoly. Option D does not prevent entry. Option F may increase market concentration but is not a structural entry barrier itself.
Thus, options B and E are correct.

NEW QUESTION # 101
Which scenario demonstrates a monopoly created by a resource?
Answer: C
Explanation:
InGlobal Economics for Managers, aresource-based monopolyarises when a single firm controls aunique, scarce resourcethat cannot be easily replicated or accessed by competitors. Option D correctly illustrates this situation. When only one mine in the world possesses a rare jewel, the firm owning that mine has exclusive control over the supply of that resource, creating monopoly power.
This type of monopoly differs from legal or technological monopolies. The monopoly exists not because of government protection or intellectual property rights, but because ofnatural scarcity. Competitors cannot enter the market without access to the same resource, and alternative sources may be unavailable or prohibitively costly. As a result, the monopolist can restrict output and charge prices above marginal cost.
Option A describes anatural monopolybased on cost structure rather than resource ownership. Options B and C describelegal monopoliescreated by copyright protection, not resource monopolies.
Thus, option D correctly demonstrates a monopoly created by control over a unique resource.

NEW QUESTION # 102
What does the Federal Reserve do to expand aggregate demand? (Choose TWO.)
Answer: A,C
Explanation:
InGlobal Economics for Managers, the Federal Reserve expands aggregate demand byincreasing the money supplyandlowering interest rates, making options B and C correct.
Increasing the money supply provides banks with more reserves, encouraging lending. Lower interest rates stimulate borrowing by households and firms, increasing consumption and investment. Both channels raise aggregate demand.
The remaining options contract demand rather than expand it. Therefore, B and C are correct.

NEW QUESTION # 103
Which quantity measures the market value of all final goods and services produced within a country in a given period of time?
Answer: A
Explanation:
InGlobal Economics for Managers,gross domestic product (GDP)is defined asthe market value of all final goods and services produced within a country's borders during a specific period, making option C correct. GDP is the most widely used indicator of a country's economic performance and size.
GDP includes onlyfinal goods and servicesto avoid double counting. Intermediate goods used in production are excluded because their value is already embedded in final goods. GDP also measures productionwithin national borders, regardless of whether the producers are domestic or foreign-owned firms.
Option A, GNI, includes income earned by citizens abroad and excludes income earned domestically by foreign firms. Option B subtracts depreciation from GDP. Option D is not a standard national income measure.
Managers use GDP to evaluate market potential, economic growth, and country risk. Therefore, option C correctly identifies GDP.

NEW QUESTION # 104
What is true about producer surplus?
Answer: B
Explanation:
InGlobal Economics for Managers,producer surplusmeasures thewell-being of sellers, making option B correct.
Producer surplus is the difference between the price producers receive and the minimum price they are willing to accept. It reflects profits plus fixed costs and indicates how much sellers benefit from participating in a market.
Options A and D confuse producer surplus with consumer or total surplus. Option C is incorrect because producer surplus is not total revenue.
Therefore, option B is correct.

NEW QUESTION # 105
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