C211 Study Guide Based on PA and some OA Memory
C211 Study Guide
OA Test Review
1. Currency hedging – Focuses on forward contracts and swaps to contain currency risks.
2. Forward transactions – Allow participants to buy and sell currencies now for future
delivery.
3. Temporarily shut down – When average variable cost (AVC) is above the price.
4. Marginal Cost – The additional cost of producing one more unit. It is the change in total
cost divided by the change in quantity.
5. Deadweight loss – The fall in total surplus that results from a tax.
6. Components of GDP
◦ Consumption, investment, government purchases, net exports (2 questions)
7. Gross domestic product
◦ Measures the total amount of expenditures, total income of everyone in the
economy.
◦ The market value of all final goods and services produced within the border of a
given country during a specified period of time.
8. Manager: Firms rationally pursue their interests.
◦ Ex: When minimum wage increases in a country, a major multinational moves
most of its production because the cost of labor is substantially lower.
1. Trade Surplus – Economic condition in which a nation exports more than it imports.
2. Primary Costs of FDI to host countries:
• Loss of sovereignty
• Adverse effects on competition
• Capital outflow
3. Primary benefits:
• Capital inflow
• Technology advancement
• Job creation
C211 Study Guide Based on PA and some OA Memory
C211 Study Guide
OA Test Review
1. Currency hedging – Focuses on forward contracts and swaps to contain currency risks.
2. Forward transactions – Allow participants to buy and sell currencies now for future
delivery.
3. Temporarily shut down – When average variable cost (AVC) is above the price.
4. Marginal Cost – The additional cost of producing one more unit. It is the change in total
cost divided by the change in quantity.
5. Deadweight loss – The fall in total surplus that results from a tax.
6. Components of GDP
◦ Consumption, investment, government purchases, net exports (2 questions)
7. Gross domestic product
◦ Measures the total amount of expenditures, total income of everyone in the
economy.
◦ The market value of all final goods and services produced within the border of a
given country during a specified period of time.
8. Manager: Firms rationally pursue their interests.
◦ Ex: When minimum wage increases in a country, a major multinational moves
most of its production because the cost of labor is substantially lower.
1. Trade Surplus – Economic condition in which a nation exports more than it imports.
2. Primary Costs of FDI to host countries:
• Loss of sovereignty
• Adverse effects on competition
• Capital outflow
3. Primary benefits:
• Capital inflow
• Technology advancement
• Job creation
C211 Study Guide Based on PA and some OA Memory
