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

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

2. A country has experienced a decrease in inflation. What is the effect on the country's currency exchange rate?

A) It depreciates
B) It increases
C) It has no effect
D) It becomes unstable

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

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

4. Which situation illustrates the proposition that when formal constraints are unclear or fail, informal constraints play a larger role in reducing uncertainty and providing constancy to firms?

A) Firms relocating overseas due to a new domestic tax policy
B) A firm follows strict environmental practices despite lax local laws
C) Firms entering gray markets due to high taxes
D) Choosing a headquarters location based on cost of living, airports, and tax credits

5. What is a feature of a democracy?

A) It delegates absolute political control over the population to one person or party.
B) It can and often does lead to nationalization, or expropriation, of foreign assets.
C) It often results in higher risk associated with political changes that may negatively impact domestic and foreign firms.
D) It gives citizens the right to elect representatives to govern on their behalf.

Solutions: