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

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

1. What are common types of barriers to entry that can cause a monopoly? (Choose TWO.)

A) Economies of scale in the production process
B) Elastic demand
C) Perfect information
D) A single firm owning a key resource
E) Free entry and exit

2. Direct exports have which advantage?

A) Elimination of exchange rate risk
B) Capitalization of economies of scale in production in the home country
C) Full control over foreign distribution
D) Lower transportation costs

3. When the Federal Reserve decreases the money supply, what is the result?

A) The quantity of goods and services demanded for any given price decreases.
B) The efficiency of market corrections is reduced.
C) The quantity of goods and services demanded for one specific price increases.
D) The aggregate demand for imports increases.

4. Which statement characterizes an institution-based view of global business?

A) Firm behaviors are the outcome of interactions between institutions and firms.
B) Financial motivations are excluded from consideration in explaining the interactions between institutions and firms.
C) Government regulations are the primary driver of institutional change.
D) Institutions, not firms, are the sole factor in explaining individual behavior.

5. In an oligopoly with an initial agreement to maximize total profit, which statements might a firm motivated by self-interest likely make? (Choose THREE.)

A) "If my fellow firms fail to live up to the agreement and raise production, I am better off raising production myself."
B) "Regardless of what my fellow firms do, I am better off raising production beyond the agreed-to level."
C) "I am better off reducing output below the agreed level."
D) "I should always cooperate, regardless of outcomes."
E) "If my fellow firms live up to the agreement, I am better off raising production."

Solutions: