WGU C201 BUSINESS ACUMEN
PRACTICE EXAM | QUESTIONS AND
ANSWERS GRADED A+ | LATEST A+ |
2024 GUIDE
What is the difference between pure competition and monopolistic
competition?
- Correct Answer - Pure competition is a market structure in
which large numbers of buyers and sellers exchange
homogeneous products, and no single participant gas a
significant impact on price. Monopolistic competition is a market
structure in which large numbers of buyers and sellers exchange
differentiated (heterogenous) products, so each participant has
some control over the price.
On which economic system in the U.S. Economy is based?
- Correct Answer - The US Economy is based on the private
enterprise system.
What is Privatization?
,- Correct Answer - The conversion of government owned and
operated companies into privately held business.
Describe the 4 stages of the business cycle.
- Correct Answer - Prosperity, recession, depression, and
recovery. Prosperity is characterized by low unemployment and
string consumer confidence. Recession may include consumers
postponing major purchases, layoffs, and decreased household
savings. A Depression occurs when an economic slowdown
continues in a downward spiral over a long period of time. In
Recovery, consumer spending increases and business activity
accelerates.
What are some measures that economists use to determine the
health of an economy?
- Correct Answer - GDP, general level of prices, core inflation
rate, the Consumer Price Index (CPI), and the Unemployment.
What is the difference between an expansionary monetary policy
and a restrictive monetary policy?
, - Correct Answer - An expansionary monetary policy increases
the money supply to cut the cost of borrowing. A restrictive
monetary policy reduces the money supply to curb rising prices,
overexpansion, and concerns about overly rapid economic growth
by increasing the cost of borrowing.
What are the 3 primary sources of government funds?
- Correct Answer - Taxes, fees, and borrowing.
Does a balanced budget erase the national debt?
- Correct Answer - No, a balanced budget does not erase the
national debt; it's just doesn't increase it/
Why us virtually no country an economic island these days?
- Correct Answer - No business or country is an economic
island because many goods and services travel across national
borders. Companies now are becoming multinational firms.
Describe 2 ways in which global expansion can benefit a US firm.
- Correct Answer - By attracting more customers and using less
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