WGU C211 - Global Economics for Managers Exam
Questions and Answers Rated A+ Latest 2023
How is total surplus determined? - correct answer ✅The total value to buyers of the goods, as
measured by their willingness to pay, minus the total cost to sellers of providing those goods.
In what ways might government or policy makers make use of surplus measures? - correct answer ✅To
measure the economic well being of a society, in terms of efficiency and equality. (i.e. maximizing total
surplus received (efficiency) and distributing economic prosperity (equality) uniformly among the
members of society
Macroeconomics - correct answer ✅The study of economy-wide phenomena, including inflation,
unemployment, and economic growth.
Microeconomics - correct answer ✅The study of how households and firms make decisions and how
they interact in markets.
Why must income equal expenditure in an economy as a whole? - correct answer ✅An economy's
income is the same as its expenditure because every transaction has two parties: a buyer and a seller.
Gross domestic product (GDP) - correct answer ✅The market value of all final goods and services
produced within a country in a given period of time.
Four components of GDP - correct answer ✅(1) Consumption (2) Investment (3) Govt purchases (4) Net
exports
Why are transfer payments such as social security not counted in government expenditures? - correct
answer ✅Because they are not made in exchange for a currently produced good or service. Transfer
payments alter household income, but they do not reflect the economy's production.
Real GDP - correct answer ✅The production of goods and services valued at constant prices, ie. $1
Nominal GDP - correct answer ✅The production of goods and services valued at current prices, i.e. $1 in
2013, $2 in 2014, etc...
, WGU C211 - Global Economics for Managers Exam
Questions and Answers Rated A+ Latest 2023
Reason to measure GDP in real terms - correct answer ✅Because (answer) GDP is not affected by
changes in prices, changes in (answer) GDP reflect only changes in the amounts being produced.
Views on Globalization - correct answer ✅New, Evolutionary, and Pendulum
"New" view on globalization - correct answer ✅A force sweeping through the world in recent times.
"Evolutionary" view on globalization - correct answer ✅A long-run historical evolution since the dawn
of human history
"Pendulum" view on globalization - correct answer ✅One that swings from one extreme to another
from time to time
Foreign Direct Investment - correct answer ✅Direct investment in, control, and management of value-
added activities in other countries
Political views on FDI - correct answer ✅Radical View, Free Market View, Pragmatic Nationalism
Benefits to a country receiving FDI - correct answer ✅Capital Inflow, Technology Spillover, Advanced
Management Know-How, Job creation
Costs to a country receiving FDI - correct answer ✅Loss of Sovereignty, Adverse effects on competition,
Capital outflow.
How do resources and capabilities influence the competitive dynamics of a business? - correct answer
✅Resource similarity and market commonality can yield a powerful framework for competitor analysis.
Resource similarity - correct answer ✅The extent to which a given competitor possesses strategic
endowment comparable, in terms of both type and amount, to those of the focal firm.
Questions and Answers Rated A+ Latest 2023
How is total surplus determined? - correct answer ✅The total value to buyers of the goods, as
measured by their willingness to pay, minus the total cost to sellers of providing those goods.
In what ways might government or policy makers make use of surplus measures? - correct answer ✅To
measure the economic well being of a society, in terms of efficiency and equality. (i.e. maximizing total
surplus received (efficiency) and distributing economic prosperity (equality) uniformly among the
members of society
Macroeconomics - correct answer ✅The study of economy-wide phenomena, including inflation,
unemployment, and economic growth.
Microeconomics - correct answer ✅The study of how households and firms make decisions and how
they interact in markets.
Why must income equal expenditure in an economy as a whole? - correct answer ✅An economy's
income is the same as its expenditure because every transaction has two parties: a buyer and a seller.
Gross domestic product (GDP) - correct answer ✅The market value of all final goods and services
produced within a country in a given period of time.
Four components of GDP - correct answer ✅(1) Consumption (2) Investment (3) Govt purchases (4) Net
exports
Why are transfer payments such as social security not counted in government expenditures? - correct
answer ✅Because they are not made in exchange for a currently produced good or service. Transfer
payments alter household income, but they do not reflect the economy's production.
Real GDP - correct answer ✅The production of goods and services valued at constant prices, ie. $1
Nominal GDP - correct answer ✅The production of goods and services valued at current prices, i.e. $1 in
2013, $2 in 2014, etc...
, WGU C211 - Global Economics for Managers Exam
Questions and Answers Rated A+ Latest 2023
Reason to measure GDP in real terms - correct answer ✅Because (answer) GDP is not affected by
changes in prices, changes in (answer) GDP reflect only changes in the amounts being produced.
Views on Globalization - correct answer ✅New, Evolutionary, and Pendulum
"New" view on globalization - correct answer ✅A force sweeping through the world in recent times.
"Evolutionary" view on globalization - correct answer ✅A long-run historical evolution since the dawn
of human history
"Pendulum" view on globalization - correct answer ✅One that swings from one extreme to another
from time to time
Foreign Direct Investment - correct answer ✅Direct investment in, control, and management of value-
added activities in other countries
Political views on FDI - correct answer ✅Radical View, Free Market View, Pragmatic Nationalism
Benefits to a country receiving FDI - correct answer ✅Capital Inflow, Technology Spillover, Advanced
Management Know-How, Job creation
Costs to a country receiving FDI - correct answer ✅Loss of Sovereignty, Adverse effects on competition,
Capital outflow.
How do resources and capabilities influence the competitive dynamics of a business? - correct answer
✅Resource similarity and market commonality can yield a powerful framework for competitor analysis.
Resource similarity - correct answer ✅The extent to which a given competitor possesses strategic
endowment comparable, in terms of both type and amount, to those of the focal firm.
