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

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

Question 1

When is it best for a firm to decrease production?

A. When total revenue is greater than total cost.
B. When the price of a unit covers the average variable cost after a short-term stop.
C. When marginal cost is greater than marginal revenue.
D. When the average variable cost is less than the price of a unit after a short-term stop.

Question 2

When confronting MNEs, the extender strategy centers on what?

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

Question 3

An import tariff is implemented on furniture. What is the effect on consumer surplus for furniture?

A. It decreases.
B. It changes depending on market conditions.
C. It increases.
D. It does not change.

Question 4

When an import tariff is placed on footwear, which quantity increases?

A. Consumer surplus for footwear
B. Domestic demand for footwear
C. The quantity of footwear imported
D. Producer surplus for footwear

Question 5

Managers and firms rationally pursue their interests and make choices within institutional constraints. This is one of the two core propositions underpinning an institution-based view of global business. Which situation illustrates this proposition?

A. Several businesses relocate overseas because of a new domestic tax policy that will increase their tax liability by 15%.
B. When a company opens a new production facility, company leaders find out that the laws of that country may allow it to skip several important safety steps. In doing so, the cost of production goes down, but there is a risk to the surrounding environment. The leaders decide not to skip these safety steps out of a deep concern and commitment to environmental protection.
C. Government corruption is rampant in a particular country, leading to a high cost of doing business.However, some smaller companies have figured out how to legally evade the most fraudulent abuses, and for them the cost of doing business becomes much cheaper. For this reason, the companies stay and have a lucrative decade.
D. Two failing banks are pursuing the option of being acquired by another institution. One bank is able to leverage political relationships to result in a successful acquisition. The other bank pursues no such political solution and eventually files for bankruptcy.

Solutions: