1|Page
WGU C211 OBJECTIVE ASSESSMENT FINAL NEWEST
2026 ACTUAL EXAM TEST BANK| C211 GLOBAL
ECONOMICS FOR MANAGERS OA FINAL REVIEW
WITH 200 REAL EXAM QUESTIONS AND CORRECT
VERIFIED ANSWERS/ GRADED A+ (MOST RECENT!!)
What are two supportive pillars for an informal institution? - ANSWER -
Cognitive. Normative.
What is the key role of an institution, according to the institution-based
view? - ANSWER - To reduce uncertainty
What are the rules, enforcement mechanisms, and organizations that
support market transactions? - ANSWER - Institutions
What is a core proposition underpinning an institutional-based view of
global business? - ANSWER - Bounded rationality
In which type of political system do citizens elect representatives to
govern the country on their behalf? - ANSWER - Democracy
Which legal system uses comprehensive lists of rules and written codes?
- ANSWER - Civil law
,2|Page
What are the legal privileges associated with the use of economic
property to obtain income and other benefits from its use? - ANSWER -
Property rights
What is the purpose of having property rights and intellectual property
rights? - ANSWER - To legally protect the use of tangible and intangible
property and allow its lawful owner to derive income and other benefits
from it
What are the two polar types of economies? - ANSWER - Centrally
planned economies. Market economies.
In addition to encouraging efficiency, why might a government intervene
in a market? - ANSWER - To promote equality
What is the relationship between total and marginal cost? - ANSWER -
Marginal cost is the change in total cost divided by the change in
quantity.
What is the economic profit of a competitive firm? - ANSWER - The
difference between total revenue and total cost
Which condition applies when a competitive firm decides to temporarily
shut down? - ANSWER - Average variable costs are above the price.
,3|Page
What is the producer's demand curve if the producer sells a
differentiated product? - ANSWER - Downward sloping
The US government has chosen to subsidize the computer chip industry,
increasing the production of computer chips in the US so that they can
eventually compete with chips produced in other countries, such as
China. What trade theory does this support? - ANSWER - Strategic trade
A country has seen a decrease in the interest rate. What is the effect on
the country's currency exchange rate? - ANSWER - It decreases
Of the major currencies, the US, Canadian, and Australian dollars, the
yen, and the pound have been under managed float since the 1970s.
Since the 1990s, several emerging economies, such as Brazil, Mexico,
and South Korea, have also joined the managed float regime. What is a
managed float exchange rate policy? - ANSWER - Using selective
government intervention to determine exchange rates.
Choose three primary types of foreign exchange transactions. -
ANSWER - Currency swap, Spot transaction, Forward transaction
An institutional framework is made up of formal and informal
institutions governing individual and firm behavior. These institutions
are supported by three "pillars" identified by Richard Scott, a leading
sociologist. What are those three pillars? - ANSWER - Cognitive,
Normative, Regulatory
, 4|Page
Which characteristics are attributed to totalitarian political regimes -
ANSWER - One party totally backed by the military, Central planner
makes decisions about what is produced.
A nation allows free trade and currently imports steel. However, due to
political pressure, the nation's government decides to implement a tariff
on steel imports. Which of the following would occur in that nation after
the tariff was added? - ANSWER - The price of steel would increase.
Which view claims that the phenomenon of globalization and trade is
driven by a Western ideology focused on exploiting and dominating the
world through multinational enterprises? - ANSWER - The new force
view
The success and failure of firms are enabled and constrained by the rules
of the game such as laws and regulations in the foreign country. -
ANSWER - Institution-based view
Which of the following political perspectives maintains the view that
FDI has both pros and cons and can only be approved when its benefits
outweigh costs? - ANSWER - Pragmatic nationalism
Trade theories are one of the oldest and most influential bodies of
economics. Which international trade theory viewed trade as a zero-sum
game? - ANSWER - Mercantilism
WGU C211 OBJECTIVE ASSESSMENT FINAL NEWEST
2026 ACTUAL EXAM TEST BANK| C211 GLOBAL
ECONOMICS FOR MANAGERS OA FINAL REVIEW
WITH 200 REAL EXAM QUESTIONS AND CORRECT
VERIFIED ANSWERS/ GRADED A+ (MOST RECENT!!)
What are two supportive pillars for an informal institution? - ANSWER -
Cognitive. Normative.
What is the key role of an institution, according to the institution-based
view? - ANSWER - To reduce uncertainty
What are the rules, enforcement mechanisms, and organizations that
support market transactions? - ANSWER - Institutions
What is a core proposition underpinning an institutional-based view of
global business? - ANSWER - Bounded rationality
In which type of political system do citizens elect representatives to
govern the country on their behalf? - ANSWER - Democracy
Which legal system uses comprehensive lists of rules and written codes?
- ANSWER - Civil law
,2|Page
What are the legal privileges associated with the use of economic
property to obtain income and other benefits from its use? - ANSWER -
Property rights
What is the purpose of having property rights and intellectual property
rights? - ANSWER - To legally protect the use of tangible and intangible
property and allow its lawful owner to derive income and other benefits
from it
What are the two polar types of economies? - ANSWER - Centrally
planned economies. Market economies.
In addition to encouraging efficiency, why might a government intervene
in a market? - ANSWER - To promote equality
What is the relationship between total and marginal cost? - ANSWER -
Marginal cost is the change in total cost divided by the change in
quantity.
What is the economic profit of a competitive firm? - ANSWER - The
difference between total revenue and total cost
Which condition applies when a competitive firm decides to temporarily
shut down? - ANSWER - Average variable costs are above the price.
,3|Page
What is the producer's demand curve if the producer sells a
differentiated product? - ANSWER - Downward sloping
The US government has chosen to subsidize the computer chip industry,
increasing the production of computer chips in the US so that they can
eventually compete with chips produced in other countries, such as
China. What trade theory does this support? - ANSWER - Strategic trade
A country has seen a decrease in the interest rate. What is the effect on
the country's currency exchange rate? - ANSWER - It decreases
Of the major currencies, the US, Canadian, and Australian dollars, the
yen, and the pound have been under managed float since the 1970s.
Since the 1990s, several emerging economies, such as Brazil, Mexico,
and South Korea, have also joined the managed float regime. What is a
managed float exchange rate policy? - ANSWER - Using selective
government intervention to determine exchange rates.
Choose three primary types of foreign exchange transactions. -
ANSWER - Currency swap, Spot transaction, Forward transaction
An institutional framework is made up of formal and informal
institutions governing individual and firm behavior. These institutions
are supported by three "pillars" identified by Richard Scott, a leading
sociologist. What are those three pillars? - ANSWER - Cognitive,
Normative, Regulatory
, 4|Page
Which characteristics are attributed to totalitarian political regimes -
ANSWER - One party totally backed by the military, Central planner
makes decisions about what is produced.
A nation allows free trade and currently imports steel. However, due to
political pressure, the nation's government decides to implement a tariff
on steel imports. Which of the following would occur in that nation after
the tariff was added? - ANSWER - The price of steel would increase.
Which view claims that the phenomenon of globalization and trade is
driven by a Western ideology focused on exploiting and dominating the
world through multinational enterprises? - ANSWER - The new force
view
The success and failure of firms are enabled and constrained by the rules
of the game such as laws and regulations in the foreign country. -
ANSWER - Institution-based view
Which of the following political perspectives maintains the view that
FDI has both pros and cons and can only be approved when its benefits
outweigh costs? - ANSWER - Pragmatic nationalism
Trade theories are one of the oldest and most influential bodies of
economics. Which international trade theory viewed trade as a zero-sum
game? - ANSWER - Mercantilism
