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WGU Global Economics for Managers (C211, UZC2) Sample Questions:

1. What are features shared by monopolies and perfect competition? (Choose TWO.)

A) Firms earn economic profits in the short run.
B) Price is greater than marginal cost.
C) In the long run, new firms can easily enter the market.
D) Maximum profit occurs when marginal revenue equals marginal cost.
E) The structure does not produce the welfare-maximizing level of output.
F) In the long run, it is nearly impossible for new firms to enter.

2. Which statement best summarizes the overall economic effect of tariffs?

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

3. Which quantity measures the market value of all final goods and services produced within a country in a given period of time?

A) Gross domestic product (GDP)
B) Net domestic product (NDP)
C) Gross national income (GNI)
D) National disposable income

4. What is the most basic way for nonfinancial companies to adjust to fluctuations of the foreign exchange market?

A) Currency hedging
B) Invoicing customers in the company's currency
C) Forward transactions
D) Rate locks

5. Managers and firms rationally pursue their interests and make choices within institutional constraints.
Which situation illustrates this proposition of the institution-based view of global business?

A) A firm lowers prices to gain market share.
B) A firm increases advertising to boost brand awareness.
C) A multinational relocates production after a minimum wage increase.
D) A firm introduces a new product due to consumer trends.

Solutions: