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

1. What is a characteristic of a market economy?

A) Central planning determines production decisions.
B) Factors of production are privately owned.
C) Prices are fixed by the government.
D) Resources are allocated through quotas.

2. What are examples of regulatory pillars? (Choose TWO.)

A) Investing in foreign currencies because others view it as safe
B) Coasting through stop signs because it is common
C) Refusing military service because of pacifist beliefs
D) Reporting a crime because it is against the law to withhold information
E) Stealing office supplies because most colleagues are doing the same thing
F) Paying parking tickets out of fear of a suspended driver's license

3. What is one of the three primary types of foreign exchange transactions?

A) Hedging transactions
B) Arbitrage transactions
C) Forward transactions
D) Spot transactions

4. What is one of the OLI advantages outlined by John Dunning for why firms become multinational enterprises by engaging in foreign direct investment?

A) Location advantages
B) Ownership advantages
C) Competitive neutrality
D) Internalization advantages

5. What is the necessity of making sensible decisions in the absence of complete information called?

A) Adverse selection
B) Perfect rationality
C) Bounded rationality
D) Moral hazard

Solutions: