WGU C211 Global Economics OA: 200 Verified
Practice Questions & Rationales (2026) – Complete
Study Guide with Key Concepts for Exam Success
Topic 1: Globalization
Question 1:
A student business researcher claims that economic
integration has naturally evolved over time, moving
from the Silk Road to modern digital trade. Which
view of globalization does this represent?
• A) The "New" view
• B) The "Evolutionary" view
• C) The "Pendulum" view
• D) The "Static" view
Correct ☑VERIFIED ANSWER: B) The "Evolutionary"
view
Rationale: The "Evolutionary" view posits that
globalization is a long-run historical evolution that
has occurred since the dawn of human history,
moving from early trade routes to the complex,
,interconnected digital economy of today. The "New"
view sees it as a recent phenomenon driven by
modern technology and multinational enterprises,
while the "Pendulum" view suggests it swings back
and forth between periods of integration and
isolation.
Question 2:
Which of the following is true of globalization
according to the "pendulum view" perspective?
• A) Globalization is a one-directional
phenomenon.
• B) Globalization is a recent force sweeping the
world.
• C) Globalization is a long-run historical
evolution.
• D) Globalization is not a one-directional
phenomenon.
Correct ☑VERIFIED ANSWER: D) Globalization is
not a one-directional phenomenon.
,Rationale: The "Pendulum" view recognizes that
globalization can swing between extremes over
time. It can move forward into periods of increased
integration and free trade, or swing backward into
periods of protectionism and deglobalization
depending on political, economic, and social forces.
Topic 2: International Trade Theories and Barriers
Question 3:
Which trade theory suggests that nations should
encourage exports and discourage imports to
accumulate gold and silver, viewing trade as a zero-
sum game?
• A) Absolute Advantage
• B) Comparative Advantage
• C) Mercantilism
• D) Product Life Cycle Theory
Correct ☑VERIFIED ANSWER: C) Mercantilism
Rationale: Mercantilism is the oldest trade theory,
asserting that a country's wealth is measured by its
, holdings of precious metals. It advocates for
government intervention to maximize trade
surpluses (exports > imports) and views
international trade as a zero-sum game where one
nation's gain is another's loss.
Question 4:
Suppose that the United States imposes a tariff on
avocados imported from Mexico. What impact will
this have on the price paid for avocados by United
States citizens?
• ☑VERIFIED ANSWER: The price will increase.
• Rationale: A tariff is a tax on imported goods. By
making imports more expensive, it reduces the
supply of foreign avocados in the U.S. market,
allowing domestic producers to raise their
prices. Ultimately, the cost of the tariff is passed
on to consumers in the form of higher prices.
Practice Questions & Rationales (2026) – Complete
Study Guide with Key Concepts for Exam Success
Topic 1: Globalization
Question 1:
A student business researcher claims that economic
integration has naturally evolved over time, moving
from the Silk Road to modern digital trade. Which
view of globalization does this represent?
• A) The "New" view
• B) The "Evolutionary" view
• C) The "Pendulum" view
• D) The "Static" view
Correct ☑VERIFIED ANSWER: B) The "Evolutionary"
view
Rationale: The "Evolutionary" view posits that
globalization is a long-run historical evolution that
has occurred since the dawn of human history,
moving from early trade routes to the complex,
,interconnected digital economy of today. The "New"
view sees it as a recent phenomenon driven by
modern technology and multinational enterprises,
while the "Pendulum" view suggests it swings back
and forth between periods of integration and
isolation.
Question 2:
Which of the following is true of globalization
according to the "pendulum view" perspective?
• A) Globalization is a one-directional
phenomenon.
• B) Globalization is a recent force sweeping the
world.
• C) Globalization is a long-run historical
evolution.
• D) Globalization is not a one-directional
phenomenon.
Correct ☑VERIFIED ANSWER: D) Globalization is
not a one-directional phenomenon.
,Rationale: The "Pendulum" view recognizes that
globalization can swing between extremes over
time. It can move forward into periods of increased
integration and free trade, or swing backward into
periods of protectionism and deglobalization
depending on political, economic, and social forces.
Topic 2: International Trade Theories and Barriers
Question 3:
Which trade theory suggests that nations should
encourage exports and discourage imports to
accumulate gold and silver, viewing trade as a zero-
sum game?
• A) Absolute Advantage
• B) Comparative Advantage
• C) Mercantilism
• D) Product Life Cycle Theory
Correct ☑VERIFIED ANSWER: C) Mercantilism
Rationale: Mercantilism is the oldest trade theory,
asserting that a country's wealth is measured by its
, holdings of precious metals. It advocates for
government intervention to maximize trade
surpluses (exports > imports) and views
international trade as a zero-sum game where one
nation's gain is another's loss.
Question 4:
Suppose that the United States imposes a tariff on
avocados imported from Mexico. What impact will
this have on the price paid for avocados by United
States citizens?
• ☑VERIFIED ANSWER: The price will increase.
• Rationale: A tariff is a tax on imported goods. By
making imports more expensive, it reduces the
supply of foreign avocados in the U.S. market,
allowing domestic producers to raise their
prices. Ultimately, the cost of the tariff is passed
on to consumers in the form of higher prices.
