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

1. Which strategy for responding to multinational enterprises is appropriate in a situation in which there is low industry pressure to globalize and competitive assets are customized to home markets?

A) Retainer strategy
B) Defender strategy
C) Responder strategy
D) Contender strategy

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

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

3. What are costs to home countries of foreign direct investment (FDI)? (Choose TWO.)

A) Cultural disintegration
B) Capital outflow
C) Reduced standard of living
D) Loss of intellectual property
E) Loss of sovereignty
F) Job loss

4. What is a characteristic of a market economy?

A) Prices are fixed by the government.
B) Resources are allocated through quotas.
C) Central planning determines production decisions.
D) Factors of production are privately owned.

5. What are examples of fixed costs? (Choose TWO.)

A) Monthly internet cost in a women's apparel business
B) Cost of parts in computer manufacturing
C) Cost of flour in bread production
D) A $1,000 state license fee to operate a shop
E) Sales commissions

Solutions: