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

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

Question 1

In which mode of entry do companies build new factories and offices from scratch?

A. Greenfield operations
B. Joint ventures
C. Direct exports
D. Co-marketing operations

Question 2

The benefit attributed to firms that enter a market before other firms in the same market segment is best described by which term?

A. Economies of scope
B. Late-mover advantage
C. Competitive neutrality
D. First-mover advantage

Question 3

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. 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.
B. 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.
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. Several businesses relocate overseas because of a new domestic tax policy that will increase their tax liability by 15%.

Question 4

The marginal revenue from producing a smartphone is $200, and the marginal cost is $150. What is the best action for the firm?

A. Decrease production
B. Pause production
C. Increase production
D. Exit the market altogether

Question 5

In order to increase the money supply, what does the Federal Reserve do?

A. Raises the federal funds rate
B. Sells government bonds to the public
C. Buys government bonds from the public
D. Increases reserve requirements

Solutions: