WGU Global-Economics-for-Managers : WGU Global Economics for Managers (C211, UZC2)

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

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

1. Which statement characterizes an institution-based view of global business?

A) Firm behaviors are the outcome of interactions between institutions and firms.
B) Institutions, not firms, are the sole factor in explaining individual behavior.
C) Financial motivations are excluded from consideration in explaining the interactions between institutions and firms.
D) Government regulations are the primary driver of institutional change.

2. 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) 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.
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) 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.

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

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

4. An institution-based view of global business focuses on the specific relationship between which two entities?

A) Firms and governments
B) Customers and firms
C) Customers and institutions
D) Firms and institutions

5. In an oligopoly with an initial agreement to maximize total profit, which statements might a firm motivated by self-interest likely make? (Choose THREE.)

A) "If my fellow firms live up to the agreement, I am better off raising production."
B) "I am better off reducing output below the agreed level."
C) "If my fellow firms fail to live up to the agreement and raise production, I am better off raising production myself."
D) "I should always cooperate, regardless of outcomes."
E) "Regardless of what my fellow firms do, I am better off raising production beyond the agreed-to level."

Solutions: