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WGU Global-Economics-for-Managers Exam Syllabus Topics:

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

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

2. What does the term resource mobility describe?

A) The idea that market forces should determine how much to trade with little or no government intervention
B) The assumption that a resource removed from one industry can be moved to another
C) The idea that governments should actively defend domestic industries from imports and vigorously promote the export of resources
D) An economic condition in which a nation exports more than it imports

3. What are characteristics of a market economy? (Choose TWO.)

A) Supply, demand, and pricing are planned by the government.
B) It found a near ideal in China and the former Soviet Union during communism.
C) It is defined by a government taking the authoritative role in the economy.
D) It is characterized by the "invisible hand" of market forces.
E) Factors of production are government-owned or state-owned.
F) It was first noted by Adam Smith in The Wealth of Nations in 1776.

4. When confronting MNEs, the extender strategy centers on what?

A) Leveraging local assets in areas in which MNEs are weak
B) Cooperating through joint ventures (JVs) with MNEs and sell-offs to MNEs
C) Engaging in rapid learning and then expanding overseas
D) Leveraging homegrown competencies abroad

5. What is a tariff levied on imports that are selling below cost in order to unfairly drive domestic firms out of business?

A) Antidumping duty
B) Opportunity cost
C) Factor endowment
D) Deadweight cost

Solutions: