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

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

1. What is one characteristic of a market surplus?

A) There is upward pressure on price
B) Quantity supplied exceeds quantity demanded
C) Price is below equilibrium
D) Quantity demanded exceeds quantity supplied

2. Institutions exist to reduce uncertainty. An institutional framework is made up of two types of systems.
What are the systems? (Choose TWO.)

A) Firm
B) Personal
C) Informal
D) Normative
E) Formal
F) Cognitive

3. What measures how the quantity demanded of one good responds to a change in the price of another good?

A) Equilibrium elasticity of demand
B) Cross-price elasticity of demand
C) Price elasticity of demand
D) Quantity elasticity of demand

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

5. Which scenario demonstrates a monopoly created by a resource?

A) An author copyrights a new book.
B) A software company copyrights the code for new software.
C) A new rare jewel is found, and only one mine in the world has it.
D) A bridge is so infrequently used that it has a large fixed cost and negligible marginal cost.

Solutions: