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

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

1. In a monopoly, which statements are likely true? (Choose TWO.)

A) Marginal revenue equals price
B) There are barriers to entry into the market
C) Entry is free in the long run
D) Firms are price takers
E) One seller offers a unique good with no close substitutes

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

A) When total variable costs are less than total revenue after a short-term stop
B) When total cost is greater than total revenue
C) When marginal cost is greater than marginal revenue
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) 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.
C) 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.
D) Several businesses relocate overseas because of a new domestic tax policy that will increase their tax liability by 15%.

4. Which pillar of formal institutions represents the coercive power of governments?

A) Cognitive
B) Normative
C) Cultural
D) Regulatory

5. What are common types of barriers to entry that can cause a monopoly? (Choose TWO.)

A) Perfect information
B) Economies of scale in the production process
C) Free entry and exit
D) A single firm owning a key resource
E) Elastic demand

Solutions: