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

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

1. Which statement is a description of theocratic law?

A) It is a legal system that uses comprehensive statutes and codes as a primary means to form legal judgments.
B) It is a legal system that is shaped by precedents and traditions from previous judicial decisions.
C) It is a legal system based on religious teachings and dogma.
D) It is a legal system that is the oldest, most influential, and most widely distributed in the world.

2. How does the Federal Reserve lower the federal funds rate?

A) By raising reserve requirements
B) By selling government bonds
C) By purchasing government bonds
D) By increasing taxes

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

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

5. Barriers to entry in a market are the main cause of monopolies. Which statement is accurate when the barrier to entry has its source in government regulation?

A) A single firm can supply a good or service to an entire market at a lower cost than two or more firms could.
B) A key resource required for production is owned by a single firm.
C) Economies of scale allow a firm to create output at a lower cost than other competitors.
D) A single firm has the exclusive legal right to produce some good or service.

Solutions: