1|Page
WGU D270 GARCIA FINAL EXAM ACCURATE AND
FREQUENTLY TESTED QUESTIONS AND 100%
CORRECT ANSWERS|| LATEST AND COMPLETE
UPDATE WITH EXPERT VERIFIED SOLUTIONS||
SURE PASS
System Complexity - ANSWER: economic systems are complex & difficult to
model = speculation. Often more data makes it worse
Market Dynamism - ANSWER: what is true today ≠
tomorrow, also what is true for West poorly transition into East
Market Interdependence - ANSWER: No country is 100% isolated, actions in
country 1 influence outcomes in country 2.
Moderates supply, demand, and pricing.
Developed Economy - ANSWER: High Income, Advanced markets, advanced
industrial economies, postindustrial economies
Generally have high income, advanced technological infrastructure and high
standards of living
16% of Global population 60% of Gross World Product
Developing Economy - ANSWER: low income, slight industrialization,
incomplete infrastructure, low standards of living
,2|Page
85% of global population 40% of Gross World Product
Economy in Transition - ANSWER: Also called Emerging Economies
exhibit improving productivity, rising income, and growing prosperity, particularly
relative to slower growing developing economies.
Approx. 30 or so in the world
Poverty - ANSWER: the state of having little or no money, few or no material
possessions and limited access to education, health and community
Base of the Pyramid - ANSWER: It is the largest, but poorest, socioeconomic
group in the world.
About 4 billion people who earn a few dollars per day and live primarily in
developing economies.
Economic freedom - ANSWER: Formally: "absolute right of property ownership,
fully realized
freedoms of movement for labor, capital, and goods, and an absolute absence of
coercion or constraint of economic liberty beyond the extent necessary for citizens
to protect and maintain liberty itself".
,3|Page
Informal- holds that one has the right to work, produce, consume, save, and invest
in the way that one prefers.
Economic Freedom Index - ANSWER: Measures the absence of government
coercion or constraint on the production, distribution, or consumption of goods and
services beyond the extent necessary for citizens to protect and maintain liberty.
Maintaining essential industries - ANSWER: Essential-Industry argument: nations
apply trade restrictions to protect crucial domestic industries so that they are not
dependent upon foreign supplies during hostile political periods
Promoting acceptable practices abroad - ANSWER: Trade limitations may be used
to compel a foreign country to amend an objectionable practice
Maintaining or extending spheres of influence - ANSWER:
Politically friendly countries should be rewarded economically. Politically
unfriendly countries should not be rewarded or punished
Preserving national culture - ANSWER: Limit imports of things that may conflict
with dominant values
Prohibit exports of art and historical items deemed part of national heritage
, 4|Page
Tariffs - ANSWER: Also called duties
a tax levied on a good shipped internationally
Specific duty - ANSWER: a tariff assessed on a per-unit basis
Ad valorem duty - ANSWER: a tariff assessed on a percentage of the item's value
compound duty - ANSWER: a tariff assessed on both a per unit and percentage of
value basis
Export tariffs - ANSWER: collected by the exporting country
Transit tariffs - ANSWER: collected by a country through which the goods pass
Importing country - ANSWER: collected by importing countries
Effective tariff controversy - ANSWER: Developing countries argue that their
processed portion of commodities have higher tariffs than the published rates
because the price of the good includes the cost of processing
WGU D270 GARCIA FINAL EXAM ACCURATE AND
FREQUENTLY TESTED QUESTIONS AND 100%
CORRECT ANSWERS|| LATEST AND COMPLETE
UPDATE WITH EXPERT VERIFIED SOLUTIONS||
SURE PASS
System Complexity - ANSWER: economic systems are complex & difficult to
model = speculation. Often more data makes it worse
Market Dynamism - ANSWER: what is true today ≠
tomorrow, also what is true for West poorly transition into East
Market Interdependence - ANSWER: No country is 100% isolated, actions in
country 1 influence outcomes in country 2.
Moderates supply, demand, and pricing.
Developed Economy - ANSWER: High Income, Advanced markets, advanced
industrial economies, postindustrial economies
Generally have high income, advanced technological infrastructure and high
standards of living
16% of Global population 60% of Gross World Product
Developing Economy - ANSWER: low income, slight industrialization,
incomplete infrastructure, low standards of living
,2|Page
85% of global population 40% of Gross World Product
Economy in Transition - ANSWER: Also called Emerging Economies
exhibit improving productivity, rising income, and growing prosperity, particularly
relative to slower growing developing economies.
Approx. 30 or so in the world
Poverty - ANSWER: the state of having little or no money, few or no material
possessions and limited access to education, health and community
Base of the Pyramid - ANSWER: It is the largest, but poorest, socioeconomic
group in the world.
About 4 billion people who earn a few dollars per day and live primarily in
developing economies.
Economic freedom - ANSWER: Formally: "absolute right of property ownership,
fully realized
freedoms of movement for labor, capital, and goods, and an absolute absence of
coercion or constraint of economic liberty beyond the extent necessary for citizens
to protect and maintain liberty itself".
,3|Page
Informal- holds that one has the right to work, produce, consume, save, and invest
in the way that one prefers.
Economic Freedom Index - ANSWER: Measures the absence of government
coercion or constraint on the production, distribution, or consumption of goods and
services beyond the extent necessary for citizens to protect and maintain liberty.
Maintaining essential industries - ANSWER: Essential-Industry argument: nations
apply trade restrictions to protect crucial domestic industries so that they are not
dependent upon foreign supplies during hostile political periods
Promoting acceptable practices abroad - ANSWER: Trade limitations may be used
to compel a foreign country to amend an objectionable practice
Maintaining or extending spheres of influence - ANSWER:
Politically friendly countries should be rewarded economically. Politically
unfriendly countries should not be rewarded or punished
Preserving national culture - ANSWER: Limit imports of things that may conflict
with dominant values
Prohibit exports of art and historical items deemed part of national heritage
, 4|Page
Tariffs - ANSWER: Also called duties
a tax levied on a good shipped internationally
Specific duty - ANSWER: a tariff assessed on a per-unit basis
Ad valorem duty - ANSWER: a tariff assessed on a percentage of the item's value
compound duty - ANSWER: a tariff assessed on both a per unit and percentage of
value basis
Export tariffs - ANSWER: collected by the exporting country
Transit tariffs - ANSWER: collected by a country through which the goods pass
Importing country - ANSWER: collected by importing countries
Effective tariff controversy - ANSWER: Developing countries argue that their
processed portion of commodities have higher tariffs than the published rates
because the price of the good includes the cost of processing
