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

1. What are represented by formal institutions?

A) Laws
B) Cultural beliefs
C) Social norms
D) Traditions

2. What are examples of intellectual property? (Choose TWO.)

A) A patent
B) A tariff
C) A subsidy
D) A trademark

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

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

4. What is one of the three primary strategies that nonfinancial companies use to cope with currency risks?

A) Reducing currency liabilities
B) Keeping low inventories
C) Using foreign dealers for their goods
D) Strategic hedging

5. Managers and firms rationally pursue their interests and make choices within institutional constraints.
Which situation illustrates this proposition of the institution-based view of global business?

A) A firm introduces a new product due to consumer trends.
B) A firm lowers prices to gain market share.
C) A multinational relocates production after a minimum wage increase.
D) A firm increases advertising to boost brand awareness.

Solutions: