WGU C211 Global Economics for Managers Exam
656 Questions with Verified Answers
The economic advantage one nation enjoys that is absolutely superior to other
nations. - CORRECT ANSWER Absolute Advantage
Total revenue minus total explicit cost - CORRECT ANSWER Accounting Profit
a wholly owned subsidiary is created through direct foreign investment. -
CORRECT ANSWER Acquisition
Bureaucratic rules that make it harder to import foreign goods. - CORRECT
ANSWER Administrative Policy
Clustering of economic activities in certain locations. Beyond geographic
advantages, location-specific advantages also arise from the clustering of
economic activities in certain locations. - CORRECT ANSWER Agglomeration
Tariffs levied on imports that have been "dumped" (selling below costs to
"unfairly" drive domestic firms out of business). - CORRECT ANSWER Antidumping
Duty
Law that makes it illegal for an exporter to sell goods below cost abroad with the
intent to raise prices after eliminating local rivals. - CORRECT ANSWER
Antidumping Law
,Law that outlaws cartels (trusts). - CORRECT ANSWER Antitrust Law
Government policy designed to combat monopolies and cartels. - CORRECT
ANSWER Antitrust Policy
An initial set of actions to gain competitive advantage. - CORRECT ANSWER Attack
changes in fiscal policy that stimulate aggregate demand when the economy goes
into a recession without policymakers having to take any deliberate action -
CORRECT ANSWER Automatic Stabilizers
Fixed cost divided by the quantity of output AFC = FC/Q - CORRECT ANSWER
Average fixed cost
total revenue divided by the quantity sold - CORRECT ANSWER Average Revenue
Total cost divided by the quantity of output
*ATC = TC / Q* - CORRECT ANSWER Average total cost
Variable cost divided by the quantity of output AVC = VC/Q - CORRECT ANSWER
Average variable cost
a country's international transaction statement. - CORRECT ANSWER Balance of
payments
,The aggregation of importing and exporting that leads to the country-level trade
surplus or deficit. - CORRECT ANSWER Balance of Trade
the result of investors moving as a herd in the same direction at the same time. ٭-
CORRECT ANSWER Bandwagon effect
the resources a bank's owners have put into the institution - CORRECT ANSWER
Bank Capital
Ability to extract favorable outcome from negotiations due to one party's
strengths. - CORRECT ANSWER Bargaining Power
Economies where people make less than $2,000 per capita per year. - CORRECT
ANSWER Base of the Pyramid
A view that questions Washington Consensus' belief in the superiority of private
ownership over state ownership in economic policy making, which is often
associated with the position held by the Chinese government. - CORRECT ANSWER
Beijing Consensus
the price offered to buy a currency. - CORRECT ANSWER Bid rate
Strategy that focuses on developing new markets ("blue ocean") and avoids
attacking core markets defended by rivals, which is likely to result in a bloody price
war or a "red ocean." - CORRECT ANSWER Blue Ocean Strategy
, The necessity of making rational decisions in the absence of complete
information. - CORRECT ANSWER Bounded Rationality
a system in which all currencies were pegged at a fixed rate to the U.S. dollar. -
CORRECT ANSWER Bretton Woods system
Brazil, Russia, India, and China. - CORRECT ANSWER BRIC
the limit on the consumption bundles that a consumer can afford - CORRECT
ANSWER Budget Constraint
a *non-equity* mode of entry used to build a longer-term presence. - CORRECT
ANSWER *B*uild-*o*perate-*t*ransfer (BOT) agreement
Sufficient resources possessed by a price leader to deter and combat defection. -
CORRECT ANSWER Capacity to Punish
a phenomenon in which a large number of individuals and companies exchange
domestic currencies for a foreign currency. ٭- CORRECT ANSWER Capital flight
a government regulation specifying a minimum amount of bank capital - CORRECT
ANSWER Capital Requirement
An output- and price-fixing entity involving multiple competitors. - CORRECT
ANSWER Cartel (trust)
656 Questions with Verified Answers
The economic advantage one nation enjoys that is absolutely superior to other
nations. - CORRECT ANSWER Absolute Advantage
Total revenue minus total explicit cost - CORRECT ANSWER Accounting Profit
a wholly owned subsidiary is created through direct foreign investment. -
CORRECT ANSWER Acquisition
Bureaucratic rules that make it harder to import foreign goods. - CORRECT
ANSWER Administrative Policy
Clustering of economic activities in certain locations. Beyond geographic
advantages, location-specific advantages also arise from the clustering of
economic activities in certain locations. - CORRECT ANSWER Agglomeration
Tariffs levied on imports that have been "dumped" (selling below costs to
"unfairly" drive domestic firms out of business). - CORRECT ANSWER Antidumping
Duty
Law that makes it illegal for an exporter to sell goods below cost abroad with the
intent to raise prices after eliminating local rivals. - CORRECT ANSWER
Antidumping Law
,Law that outlaws cartels (trusts). - CORRECT ANSWER Antitrust Law
Government policy designed to combat monopolies and cartels. - CORRECT
ANSWER Antitrust Policy
An initial set of actions to gain competitive advantage. - CORRECT ANSWER Attack
changes in fiscal policy that stimulate aggregate demand when the economy goes
into a recession without policymakers having to take any deliberate action -
CORRECT ANSWER Automatic Stabilizers
Fixed cost divided by the quantity of output AFC = FC/Q - CORRECT ANSWER
Average fixed cost
total revenue divided by the quantity sold - CORRECT ANSWER Average Revenue
Total cost divided by the quantity of output
*ATC = TC / Q* - CORRECT ANSWER Average total cost
Variable cost divided by the quantity of output AVC = VC/Q - CORRECT ANSWER
Average variable cost
a country's international transaction statement. - CORRECT ANSWER Balance of
payments
,The aggregation of importing and exporting that leads to the country-level trade
surplus or deficit. - CORRECT ANSWER Balance of Trade
the result of investors moving as a herd in the same direction at the same time. ٭-
CORRECT ANSWER Bandwagon effect
the resources a bank's owners have put into the institution - CORRECT ANSWER
Bank Capital
Ability to extract favorable outcome from negotiations due to one party's
strengths. - CORRECT ANSWER Bargaining Power
Economies where people make less than $2,000 per capita per year. - CORRECT
ANSWER Base of the Pyramid
A view that questions Washington Consensus' belief in the superiority of private
ownership over state ownership in economic policy making, which is often
associated with the position held by the Chinese government. - CORRECT ANSWER
Beijing Consensus
the price offered to buy a currency. - CORRECT ANSWER Bid rate
Strategy that focuses on developing new markets ("blue ocean") and avoids
attacking core markets defended by rivals, which is likely to result in a bloody price
war or a "red ocean." - CORRECT ANSWER Blue Ocean Strategy
, The necessity of making rational decisions in the absence of complete
information. - CORRECT ANSWER Bounded Rationality
a system in which all currencies were pegged at a fixed rate to the U.S. dollar. -
CORRECT ANSWER Bretton Woods system
Brazil, Russia, India, and China. - CORRECT ANSWER BRIC
the limit on the consumption bundles that a consumer can afford - CORRECT
ANSWER Budget Constraint
a *non-equity* mode of entry used to build a longer-term presence. - CORRECT
ANSWER *B*uild-*o*perate-*t*ransfer (BOT) agreement
Sufficient resources possessed by a price leader to deter and combat defection. -
CORRECT ANSWER Capacity to Punish
a phenomenon in which a large number of individuals and companies exchange
domestic currencies for a foreign currency. ٭- CORRECT ANSWER Capital flight
a government regulation specifying a minimum amount of bank capital - CORRECT
ANSWER Capital Requirement
An output- and price-fixing entity involving multiple competitors. - CORRECT
ANSWER Cartel (trust)
