WGU C211 OA Global Economics Exam (2022/2023) (Verified Answers)

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C211 4. Which political view of foreign direct investment (FDI) is most widely used by governments in the current international business environment? Radicalism Protectionism Communism nationali... sm 5. Which factors predict the degree of rivalry between a pair of competitors? 2 choices Market commonality Cost structure Resource similarity Organizational structure 6. Which factors predicts how local firms in emerging economics will respond to multinational competitors? Competitive assets and industry pressures to globalize Formal and informal institutions Market dominance and market fragmentation Cooperation and signaling 7. During which stage of the product life cycle do sales and profits gradually increase before seeing more dramatic increases? Introduction Maturity Growth Decline 8. Which factor determines the foreign exchange rate any currency? Universal trade of the currency Supply and demand for the currency The age of the currency Business economics of the currency 9. Which risk must a corporation minimize if it is to effectively manage short-term currency fluctuations? Beta risk Hedging Alpha risk Transaction risk 10. Which policy does a country use to determine the exchange rate of their currency in relationship to another country's currency if they do not rely on market forces? Clean float rate policy Fixed rate policy Flexible rate policy Floating rate policy 11. Which term refers to trading currencies and currency derivatives in order to earn profits and help make prices efficient? Investing Brokering Downloaded by merchant billy (merchantbillythegoat@gmail.com) lOMoARcPSD|15946012 Day trading Speculation 12. Which type of advantage is gained by a company based on where it operates? Lifecycle-specific Innovation-specific Institution-specific Location-specific 13. Who gains from erecting significant entry barriers for other entrants? Late mover Early movers Laggard First movers 14. Which strategy for entering into a foreign market has the lowest degree of risk? Wholly-owned subsidiary Joint venture Foreign acquisition Licensing 15. What is a non-equity mode involving some type of contractual agreement? Minority joint venturing Direct exporting Licensing Acquisition 16. After the Lehman Brothers collapse, the federal Reserve stood ready to lend financial institutions funds. When the Federal reserve did this, it was acting in its role as a lender of last resort. Which type of group has this role? Informal institution Nongovernmental organization Formal institution Government agency 17. What is the comprehensive free-trade settlement among Canada, US, and Mexico, that addresses issues of protecting workers rights, the environment and reducing tariffs and non-tariff trade barriers? NAFTA ASEAN AMEA Mercosur 18. What is one of the core propositions underpinning an institution-based view of global business? A political system should establish controls of the financial sector Countries should provide tariff protection If formal constraints are not in place, the informal constraints will guide decision making Investment in infrastructure provides a multiplier effect in a developing economy 19. What is one of the core propositions underpinning an institution-based view of global business? Investment in infrastructure provides a multiplier effect in a developing economy Government should provide tariff protection Managers and corporations make rational decisions within their formal and informal framework Downloaded by merchant billy (merchantbillythegoat@gmail.com) lOMoARcPSD|15946012 A political system should establish controls of the financial sector 20. Which type of system allows businesses to be privately owned with a strong individualistic profit orientation? Market economy Democracy Command economy Totalitarianism 21. Which legal system is based on a religious document and religious teachings? Property law Theocratic law Civil law Common law 22. Which type of good has well-established property rights? Public goods Private goods Club goods Common goods 23. Which activity disregards basic property rights? A person reads a newspaper on the backyard patio Someone chooses to ride a bike to work rather than drive a car Students play loud music in the open area between dorms Executives discuss strategy in the company boardroom 24. What is one type of economy that uses the market system? Political economy Mixed economy Universal economy Dual economy 25. Which kind of outcome was Adam Smith referring to when describing the invisible hand? Open outcomes Planned outcomes Mixed outcomes Market outcomes 26. What does the value of the marginal product of labor for a perfectly competitive, profit-maximizing firm equal? Loss Rate Cost wage 27. What is the change in total cost equal to? Marginal cost multiplied by quantity Marginal cost multiplied by change in quantity Marginal cost multiplied by total cost Marginal cost divided by total cost Downloaded by merchant billy (merchantbillythegoat@gmail.com) lOMoARcPSD|15946012 28. Which condition must be satisfied for a competitive firm to shut down in a short run Total variable costs are greater than total revenue Total revenue covers total variable costs Total fixed costs are greater than total revenue Total revenue is equal to price 29. What will a competitive firm do in the short run if its average variable cost exceeds price? It will expand production It will shut down It will produce to make economic profit It will prevent other firms from entering the industry 30. What is a characteristic of a monopoly's demand curve? It is the same as the marginal revenue curve It is the same as the market demand curve It is the same as the supply curve It is more elastic than the demand curve of a competitive firm 31. Which statement describes a monopoly demand curve? It is perfectly inelastic It is perfectly elastic It is less elastic than a perfectly competitive firms demand curve It is the same as its marginal revenue curve 32. What is the profit maximization condition for a monopoly? Where marginal cost is minimized Where total revenues are maximized Where price equals marginal cost Where marginal revenue equals marginal cost 33. What is a characteristic of monopolistic competition? Firms have equal market power Many firms sell identical products Firms avoid advertising Many firms sell differentiated products 34. How does self-interest influence each priC211 4. Which political view of foreign direct investment (FDI) is most widely used by governments in the current international business environment? Radicalism Protectionism Communism nationalism 5. Which factors predict the degree of rivalry between a pair of competitors? 2 choices Market commonality Cost structure Resource similarity Organizational structure 6. Which factors predicts how local firms in emerging economics will respond to multinational competitors? Competitive assets and industry pressures to globalize Formal and informal institutions Market dominance and market fragmentation Cooperation and signaling 7. During which stage of the product life cycle do sales and profits gradually increase before seeing more dramatic increases? Introduction Maturity Growth Decline 8. Which factor determines the foreign exchange rate any currency? Universal trade of the currency Supply and demand for the currency The age of the currency Business economics of the currency 9. Which risk must a corporation minimize if it is to effectively manage short-term currency fluctuations? Beta risk Hedging Alpha risk Transaction risk 10. Which policy does a country use to determine the exchange rate of their currency in relationship to another country's currency if they do not rely on market forces? Clean float rate policy Fixed rate policy Flexible rate policy Floating rate policy 11. Which term refers to trading currencies and currency derivatives in order to earn profits and help make prices efficient? Investing Brokering Downloaded by merchant billy (merchantbillythegoat@gmail.com) lOMoARcPSD|15946012 Day trading Speculation 12. Which type of advantage is gained by a company based on where it operates? Lifecycle-specific Innovation-specific Institution-specific Location-specific 13. Who gains from erecting significant entry barriers for other entrants? Late mover Early movers Laggard First movers 14. Which strategy for entering into a foreign market has the lowest degree of risk? Wholly-owned subsidiary Joint venture Foreign acquisition Licensing 15. What is a non-equity mode involving some type of contractual agreement? Minority joint venturing Direct exporting Licensing Acquisition 16. After the Lehman Brothers collapse, the federal Reserve stood ready to lend financial institutions funds. When the Federal reserve did this, it was acting in its role as a lender of last resort. Which type of group has this role? Informal institution Nongovernmental organization Formal institution Government agency 17. What is the comprehensive free-trade settlement among Canada, US, and Mexico, that addresses issues of protecting workers rights, the environment and reducing tariffs and non-tariff trade barriers? NAFTA ASEAN AMEA Mercosur 18. What is one of the core propositions underpinning an institution-based view of global business? A political system should establish controls of the financial sector Countries should provide tariff protection If formal constraints are not in place, the informal constraints will guide decision making Investment in infrastructure provides a multiplier effect in a developing economy 19. What is one of the core propositions underpinning an institution-based view of global business? Investment in infrastructure provides a multiplier effect in a developing economy Government should provide tariff protection Managers and corporations make rational decisions within their formal and informal framework Downloaded by merchant billy (merchantbillythegoat@gmail.com) lOMoARcPSD|15946012 A political system should establish controls of the financial sector 20. Which type of system allows businesses to be privately owned with a strong individualistic profit orientation? Market economy Democracy Command economy Totalitarianism 21. Which legal system is based on a religious document and religious teachings? Property law Theocratic law Civil law Common law 22. Which type of good has well-established property rights? Public goods Private goods Club goods Common goods 23. Which activity disregards basic property rights? A person reads a newspaper on the backyard patio Someone chooses to ride a bike to work rather than drive a car Students play loud music in the open area between dorms Executives discuss strategy in the company boardroom 24. What is one type of economy that uses the market system? Political economy Mixed economy Universal economy Dual economy 25. Which kind of outcome was Adam Smith referring to when describing the invisible hand? Open outcomes Planned outcomes Mixed outcomes Market outcomes 26. What does the value of the marginal product of labor for a perfectly competitive, profit-maximizing firm equal? Loss Rate Cost wage 27. What is the change in total cost equal to? Marginal cost multiplied by quantity Marginal cost multiplied by change in quantity Marginal cost multiplied by total cost Marginal cost divided by total cost Downloaded by merchant billy (merchantbillythegoat@gmail.com) lOMoARcPSD|15946012 28. Which condition must be satisfied for a competitive firm to shut down in a short run Total variable costs are greater than total revenue Total revenue covers total variable costs Total fixed costs are greater than total revenue Total revenue is equal to price 29. What will a competitive firm do in the short run if its average variable cost exceeds price? It will expand production It will shut down It will produce to make economic profit It will prevent other firms from entering the industry 30. What is a characteristic of a monopoly's demand curve? It is the same as the marginal revenue curve It is the same as the market demand curve It is the same as the supply curve It is more elastic than the demand curve of a competitive firm 31. Which statement describes a monopoly demand curve? It is perfectly inelastic It is perfectly elastic It is less elastic than a perfectly competitive firms demand curve It is the same as its marginal revenue curve 32. What is the profit maximization condition for a monopoly? Where marginal cost is minimized Where total revenues are maximized Where price equals marginal cost Where marginal revenue equals marginal cost 33. What is a characteristic of monopolistic competition? Firms have equal market power Many firms sell identical products Firms avoid advertising Many firms sell differentiated products 34. How does self-interest influence each pri [Show More]

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