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WGU Global Economics for Managers (C211, UZC2) Sample Questions:
1. Direct exports have which advantage?
A) Lower transportation costs
B) Elimination of exchange rate risk
C) Full control over foreign distribution
D) Capitalization of economies of scale in production in the home country
2. Which methods does the Federal Reserve use to alter reserve quantities? Choose three answers.
A) Raising inflation
B) Raising income tax rates
C) Selling bonds
D) Buying bonds
E) Selling stock shares
F) Raising the discount rate
3. What is deadweight cost?
A) The lost potential from pursuing one activity at the expense of another, given the alternatives
B) A government payment to a domestic firm
C) A tariff levied on imports that are selling below cost in order to unfairly drive domestic firms out of business
D) A net loss that occurs in an economy as a result of tariffs
4. One view of globalization claims that human civilization has always had some type of globalization.
Which view is it?
A) The modern institutional view
B) The long-run historical view
C) The short-run economic view
D) The technological convergence view
5. What is one benefit of small-scale entries into foreign markets?
A) They focus on learning by doing while limiting the downside risk.
B) They give complete equity and operational control.
C) They demonstrate a strategic commitment to certain markets.
D) They present easy opportunities to build market share.
Solutions:
Question # 1 Answer: D | Question # 2 Answer: C,D,F | Question # 3 Answer: D | Question # 4 Answer: B | Question # 5 Answer: A |