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

1. What is one benefit of small-scale entries into foreign markets?

A) They give complete equity and operational control.
B) They present easy opportunities to build market share.
C) They demonstrate a strategic commitment to certain markets.
D) They focus on learning by doing while limiting the downside risk.

2. Which characteristics are attributed to a democracy? (Choose THREE.)

A) It prizes freedom of expression and organization.
B) It extends the right to organize economically to domestic and foreign firms.
C) It concentrates power in a single ruling party.
D) It contains political risk that is lower than in other political systems.
E) It prohibits private ownership.

3. When is it best for a firm to restart production?

A) When total revenue is less than total cost
B) When total cost is greater than total revenue
C) When marginal cost is greater than marginal revenue
D) When total variable costs are less than total revenue after a short-term stop

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

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

5. When demand decreases and supply stays the same, what happens to the equilibrium point of price and quantity? (Choose TWO.)

A) Price increases
B) Quantity increases
C) Quantity decreases
D) Price decreases

Solutions: