Instant Access WGU.Global-Economics-for-Managers.v2026-08-17.q51 Actual Practice Test Engine for Free (Page 4)

Welcome to DumpsDB

- Passing Exams, Dumps for Free

Request Exam Contact

Home
Popular Exams
- Oracle
- Fortinet
- Juniper
- Microsoft
- Cisco
- Citrix
- CompTIA
- VMware
- ISC
- SAP
- EMC
- PMI
- HP
- Salesforce
View All Exams
New Dumps
Upload

Oracle
Fortinet
Juniper
Microsoft
Cisco
Citrix
CompTIA
VMware
ISC
SAP
EMC
PMI
HP
Salesforce

Home
WGU Certification
Global-Economics-for-Managers Exam
WGU.Global-Economics-for-Managers.v2026-08-17.q51 Dumps

«
1
2
3
4
5
6
7
8
9
10
…
»
»»

Question 11

What is a characteristic of a market economy?

A.Central planning determines production decisions.
B.Factors of production are privately owned.
C.Prices are fixed by the government.
D.Resources are allocated through quotas.

Correct Answer: B

InGlobal Economics for Managers, amarket economyis characterized byprivate ownership of the factors of production, making option B correct. Individuals and firms own land, labor, capital, and entrepreneurship, and decisions are guided by market prices rather than central planning.
Private ownership creates incentives for efficiency, innovation, and investment. Prices emerge from supply and demand, coordinating economic activity through what Adam Smith described as the "invisible hand." Options A, C, and D describe command economies, not market economies.
Thus, option B correctly identifies a defining feature of a market economy.

Comment: *

Name: *

Email: *

Verification: *

insert code

Question 12

What is a characteristic of a market economy?

A.It found a near ideal in China and the former Soviet Union during the heydays of communism.
B.The government takes a hands-off approach known as laissez-faire.
C.It is defined by a government taking the authoritative role in the economy.
D.Factors of production are government-owned or state-owned.

Correct Answer: B

A market economy is associated with limited government intervention and reliance on private decision making, often described as a laissez-faire approach. Option B is correct because laissez-faire means the government largely allows market forces to guide production, pricing, investment, and consumption. In a pure market system, private individuals and firms own resources and respond to price signals. Option A is incorrect because China under communism and the former Soviet Union are classic examples of command economies, not market economies. Option C is also a command-economy characteristic because it gives government the authoritative role. Option D is wrong for the same reason: state ownership of production factors belongs to command or socialist systems. Market economies emphasize private ownership and voluntary exchange.

Comment: *

Name: *

Email: *

Verification: *

insert code

Question 13

Which transaction is included in the consumption component of GDP?

A.A firm purchases new machinery
B.A government builds a highway
C.A person pays for a haircut
D.A company exports automobiles

Correct Answer: C

InGlobal Economics for Managers, theconsumption component of GDPincludeshousehold spending on goods and services, making option C correct.
When a person pays for a haircut, it represents a direct purchase of a service by a household. Consumption is the largest component of GDP in most economies and includes spending on nondurable goods, durable goods, and services.
Option A is classified as investment. Option B is government spending. Option D is an export, counted in net exports.
Thus, option C correctly identifies a consumption transaction.

Comment: *

Name: *

Email: *

Verification: *

insert code

Question 14

Which statement best summarizes the overall economic effect of tariffs?

A.They increase total economic surplus
B.They benefit consumers more than producers
C.They transfer surplus from consumers to producers and the government
D.They eliminate inefficiencies in global trade

Correct Answer: C

InGlobal Economics for Managers, tariffs are shown toredistribute economic surplus, making option C correct. When a tariff is imposed, consumers lose surplus due to higher prices, while domestic producers gain surplus and the government collects tariff revenue.
However, the gains to producers and government do not fully offset consumer losses, resulting in deadweight loss. Thus, tariffs reduce total economic welfare even though certain groups benefit.
Options A, B, and D are incorrect.
Therefore, option C accurately summarizes the overall economic effect of tariffs.

Comment: *

Name: *

Email: *

Verification: *

insert code

Question 15

What are common types of barriers to entry that can cause a monopoly? (Choose TWO.)

A.Elastic demand curves
B.Economies of scale in the production process
C.Government regulations prohibiting foreign investment
D.Employee unions
E.Government regulations granting exclusive production rights
F.A firm purchasing competitors

Correct Answer: B,E

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.

Comment: *

Name: *

Email: *

Verification: *

insert code

«
1
2
3
4
5
6
7
8
9
10
…
»
»»

[×]

Download PDF File

Enter your email address to download WGU.Global-Economics-for-Managers.v2026-08-17.q51 Dumps

Email:

We are the Largest and the most Updated website for all vendors Certification Exam materials around the world.

Using resources of we provide, we strive using dumps to strengthen the community of High level Certification professionals for free.

DMCA
About
Contact Us
Privacy Policy
Terms & Conditions

©2026 DumpsDB

www.dumpsdb.com materials do not contain actual questions and answers from Cisco's certification exams.

Web Analytics