WGU C211 Global Economics for Managers
Exam | Questions and Verified Answers|
100% Correct (New 2023/ 2024 Update)
Grade A
What is a property
... [Show More] right?
Answer:
The legal rights to use an economic property (resource) and to derive income and benefits from
it.
QUESTION
What is an intellectual property right?
Answer:
Rights associated with the ownership of intellectual property.
QUESTION
command economy
Answer:
An economy that is characterized by government ownership and control of factors of production.
QUESTION
mixed economy
Answer:
An economy that has elements of both a market economy and a command economy.
QUESTION
What is an indifference curve?
Answer:
a curve that shows consumption bundles that give the consumer the same level of satisfaction
QUESTION
What are the four properties of an indifference curve?
Answer:
Downward sloping
Preferred to lower ones
It cannot intersect
the Convex is bowed inward
QUESTION
Explain marginal rate of substitution.
Answer:
the rate at which a consumer is willing to trade one good for another
QUESTION
What is a budget constraint?
Answer:
the limit on the consumption bundles that a consumer can afford
QUESTION
How might a budget constraint be impacted by an increase in income?
Answer:
With higher income, a consumer can afford more of both goods. The increase in income shifts
the budget constraint OUTWARD.
QUESTION
What two graphical elements are needed in order to determine a consumer's optimal point of
consumption?
Answer:
Budget Constraint- (The limit on the consumption bundles that a consumer can afford) &
Indifference curve
QUESTION
How is a consumer's optimal point of consumption determined precisely?
Answer:
Where the budget contraction touches the indifference curve
QUESTION
How is marginal cost derived?
Answer:
the increase in total cost that arises from an extra unit of production
QUESTION
How is marginal cost related to total cost?
Answer:
The portion of total cost resulting from an extra unit of production.
QUESTION
What is the specific formula to calculate marginal cost? [Show Less]