WGU C211 Global Economics for Managers Exam 2 (Latest 2023 - 2024)
New Full Exam Questions and Answers ( Included ) 100% Correct
- Homer buys pizza for $10 and Pepsi for $2. He has income of $100. His budget
constraint will shift inward if
Answer: the price of pizza rises to $12
- Marge also buys pizza for $10 and Pepsi for $2. She has income of $200. Her
budget constraint will experience a parallel outward shift if Answer: the price of pizza rises to $20, the price of Pepsi rises to $4, and her income rises to $500
- At two points on an indifference curve
Answer: the bundles of goods yield the consumer the same satisfaction.
- At any point on an indifference curve, the slope of the curve measures the
consumer's
Answer: willingness to trade one good for the other.
- Bart and Lisa are both optimizing consumers in the markets for shirts and hats,
where they pay $100 for a shirt and $50 for a hat. Bart buys 8 shirts and 4 hats, while Lisa buys 6 shirts and 12 hats. From this information, we can infer that Bart's marginal rate of substitution is hats per shirt, while Lisa's is .
Answer: 2, 2
- Maggie buys peanut butter and jelly, both of which are normal goods. When the price
of peanut butter rises, the income effect induces Maggie to buy peanut butter and jelly. 1 / 2
Answer: less, less
- Ned buys wine and bread. When the price of wine rises, the substitution effect
induces Ned to buy wine and bread.
Answer: less, more
- Mr. Burns buys only lobster and chicken. Lobster is a normal good, while chicken
is an inferior good. When the price of lobster rises, Mr. Burns buys-
Answer: less lobster and more chicken.
- If Edna buys more pasta when the price of pasta increases, we can infer that for
Edna
Answer: pasta is an inferior good for which the income effect exceeds the
substitution effect.
- Maude's labor-supply curve slopes upward if, for Maude
Answer: the substitution effect on leisure exceeds the income effect.
- Consumption when young and consumption when old are both normal goods for
Seymour, a worker saving for retirement. When the interest rate falls, what happens to Seymour's consumption when old?
Answer: It definitely de- creases.
- If the consumer's income is $140, then what is the price of a CD?
Answer: $7
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