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

1. In which mode of entry do companies build new factories and offices from scratch?

A) Greenfield operations
B) Co-marketing operations
C) Joint ventures
D) Direct exports

2. What is purchasing power parity (PPP)?

A) The movement of investors in the same direction at the same time
B) A theory suggesting that the price for identical products sold in different countries must be the same in the absence of trade barriers
C) The gain from taking advantage of inefficient exchange rates
D) The idea that a country ' s exchange rate is an indicator of socioeconomic well-being

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

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

4. What is one of the elements of the Porter Diamond in the theory of national competitive advantage of industries?

A) Firm opportunity costs
B) Domestic demand conditions
C) Foreign supply markets
D) Trade deficits

5. Which phrase best describes property rights?

A) The legal rights regarding the use of an economic resource and for deriving income and benefits from it.
B) The exclusive legal rights of authors and publishers to publish and disseminate their works.
C) The exclusive legal rights of firms to use specific names, brands, and designs to differentiate their products from others.
D) The legal rights awarded by government authorities to inventors of new products or processes.

Solutions: