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

1. When confronting MNEs, the extender strategy centers on what?

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

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

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

3. A shopper purchases a shirt for $17 but was willing to pay $25. What does this indicate?

A) The consumer surplus is $8.
B) The producer surplus is $25.
C) The consumer surplus is $25.
D) The producer surplus is $17.

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

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

5. Costs that do not vary with output quantity divided by the quantity of output is best described by which term?

A) Average variable cost
B) Total cost
C) Average fixed cost
D) Marginal cost

Solutions: