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

1. Who are the primary and largest participants in the foreign exchange market?

A) Central banks
B) Large international banks
C) Individual currency traders
D) Multinational manufacturing firms

2. What is true about producer surplus?

A) It measures the well-being of consumers
B) It equals total revenue
C) It measures social welfare
D) It is used to measure the well-being of sellers

3. An institution-based view of global business focuses on the specific relationship between which two entities?

A) Customers and firms
B) Firms and institutions
C) Customers and institutions
D) Firms and governments

4. Which situation illustrates the proposition that when formal constraints are unclear or fail, informal constraints play a larger role in reducing uncertainty and providing constancy to firms?

A) Choosing a headquarters location based on cost of living, airports, and tax credits
B) A firm follows strict environmental practices despite lax local laws
C) Firms relocating overseas due to a new domestic tax policy
D) Firms entering gray markets due to high taxes

5. In which situation is the contender strategy appropriate for responding to multinational enterprises (MNEs)?

A) There is high industry pressure to globalize, and competitive assets are transferable abroad.
B) There is low industry pressure to globalize, and competitive assets are transferable abroad.
C) There is high industry pressure to globalize, and competitive assets are customized to home markets.
D) There is low industry pressure to globalize, and competitive assets are customized to home markets.

Solutions: