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WGU C211 - Global Economics for Managers
How is global business affected by totalitarianism? - . . ANSWER
✓✓ These countries often experience wars, riots, protests,
chaos, and breakdowns, which result in higher political risk.
How is marginal cost related to total cost? - . . ANSWER ✓✓ The
portion of total cost resulting from an extra unit of production.
How is total surplus determined? - . . 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.
How might a budget constraint be impacted by an increase in
income? - . . ANSWER ✓✓ Additional bundles could be
consumed with an increase in income.
How might an oligopolistic firm behave like a monopoly? What
forces may prevent this? - . . ANSWER ✓✓ Forming a cartel and
acting like a monopolist, but self-interest drives them towards
competition
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"Evolutionary" view on globalization - . . ANSWER ✓✓ A long-
run historical evolution since the dawn of human history
"New" view on globalization - . . ANSWER ✓✓ A force sweeping
through the world in recent times.
"Pendulum" view on globalization - . . ANSWER ✓✓ One that
swings from one extreme to another from time to time
3 types of elasticity, their equations, purpose and outcomes - . .
ANSWER ✓✓ (1) Price elasticity of demand - % chg in Q D / % chg
in P
(2) Income elasticity - % chg in Q D / % chg in income
(3) Cross-price elasticity - % chg in Q D Good 1/% chg in Good #2
P
Absolute advantage - . . ANSWER ✓✓ The economic advantage
one nation enjoys that is superior to other nations
Benefits to a country receiving FDI - . . ANSWER ✓✓ Capital
Inflow, Technology Spillover, Advanced Management Know-How,
Job creation
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Budget constraint - . . ANSWER ✓✓ The consumption bundles
that the consumer can afford.
Civil law - . . ANSWER ✓✓ Law that uses comprehensive
statutes and codes as a primary means to form legal judgments.
Classical theories of international trade - . . ANSWER ✓✓
Mercantilism, Absolute advantage, and Comparative advantage
Classical theory view - . . ANSWER ✓✓ Static
Cognitive pillar - . . ANSWER ✓✓ The internalized, taken-for-
granted values and beliefs that guide behavior. (beliefs between
right/wrong)
Command economy - . . ANSWER ✓✓ One that is defined by a
government taking all factors of production to be government-
owned or state-owned, and all supply, demand, and pricing are
planned by the government.
Common law - . . ANSWER ✓✓ Law shaped by precedents and
traditions from previous judicial decisions.
WGU C211 - Global Economics for Managers
How is global business affected by totalitarianism? - . . ANSWER
✓✓ These countries often experience wars, riots, protests,
chaos, and breakdowns, which result in higher political risk.
How is marginal cost related to total cost? - . . ANSWER ✓✓ The
portion of total cost resulting from an extra unit of production.
How is total surplus determined? - . . 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.
How might a budget constraint be impacted by an increase in
income? - . . ANSWER ✓✓ Additional bundles could be
consumed with an increase in income.
How might an oligopolistic firm behave like a monopoly? What
forces may prevent this? - . . ANSWER ✓✓ Forming a cartel and
acting like a monopolist, but self-interest drives them towards
competition
,2|Page
"Evolutionary" view on globalization - . . ANSWER ✓✓ A long-
run historical evolution since the dawn of human history
"New" view on globalization - . . ANSWER ✓✓ A force sweeping
through the world in recent times.
"Pendulum" view on globalization - . . ANSWER ✓✓ One that
swings from one extreme to another from time to time
3 types of elasticity, their equations, purpose and outcomes - . .
ANSWER ✓✓ (1) Price elasticity of demand - % chg in Q D / % chg
in P
(2) Income elasticity - % chg in Q D / % chg in income
(3) Cross-price elasticity - % chg in Q D Good 1/% chg in Good #2
P
Absolute advantage - . . ANSWER ✓✓ The economic advantage
one nation enjoys that is superior to other nations
Benefits to a country receiving FDI - . . ANSWER ✓✓ Capital
Inflow, Technology Spillover, Advanced Management Know-How,
Job creation
, 3|Page
Budget constraint - . . ANSWER ✓✓ The consumption bundles
that the consumer can afford.
Civil law - . . ANSWER ✓✓ Law that uses comprehensive
statutes and codes as a primary means to form legal judgments.
Classical theories of international trade - . . ANSWER ✓✓
Mercantilism, Absolute advantage, and Comparative advantage
Classical theory view - . . ANSWER ✓✓ Static
Cognitive pillar - . . ANSWER ✓✓ The internalized, taken-for-
granted values and beliefs that guide behavior. (beliefs between
right/wrong)
Command economy - . . ANSWER ✓✓ One that is defined by a
government taking all factors of production to be government-
owned or state-owned, and all supply, demand, and pricing are
planned by the government.
Common law - . . ANSWER ✓✓ Law shaped by precedents and
traditions from previous judicial decisions.
