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

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

1. Which GDP component is affected when a parent pays for a child's college education?

A) Net exports
B) Government purchases
C) Consumption
D) Investment

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

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

3. 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) 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.
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) 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.
D) Several businesses relocate overseas because of a new domestic tax policy that will increase their tax liability by 15%.

4. When is it best for a firm to decrease production?

A) When total revenue is greater than total cost.
B) When the price of a unit covers the average variable cost after a short-term stop.
C) When marginal cost is greater than marginal revenue.
D) When the average variable cost is less than the price of a unit after a short-term stop.

5. What are examples of equity modes of entry? (Choose THREE.)

A) Franchising
B) Licensing
C) Greenfield investments
D) Strategic alliances
E) Acquisitions

Solutions: