WGU - MBA - C211 - Global Economics for
Managers Update Questions with Correct
Answers
"Four Tigers" - Answer -Hong Kong, Singapore, South Korea and Taiwan
65% - Answer -What % of the world's foreign exchange transactions are in USD$?
80% - Answer -What % of the world's foreign exchange transactions are in dollars?
Absolute advantage - Answer -The economic advantage one nation enjoys that is absolutely
superior to other nations.
Absolute Advantage - Answer -What theory has the strengths: Birth of modern economics,
forerunner of the free trade movement, defeats mercantilism intellectually?
Absolute Advantage - Answer -What theory has the weaknesses: when one nation is absolutely
inferior there is no advice, when there are many nations it may be difficult to find an absolute
advantage?
accounting profit - Answer -total revenue minus total explicit cost
accounting profit - Answer -total revenue minus total explicit cost
Administrative policy - Answer -Bureaucratic rules that make it harder to import foreign goods.
Agglomeration - Answer -Clustering of economic activities in certain locations.
aggregate demand - Answer -specifies the amounts of goods and services that will be purchased at
all possible price levels.
aggregate demand - Answer -the total demand for final goods and services in the economy at a
given time and price level.
Amount received by sellers - cost to sellers - Answer -Equation for producer surplus
antidumping duty - Answer -Tariffs levied on imports that have been "dumped" (selling below
costs to "unfairly" drive domestic firms out of business).
Antidumping law - Answer -Law that makes it illegal for an exporter to sell goods below cost
abroad with the intent to raise prices after eliminating local rivals.
Antitrust law - Answer -Law that outlaws cartels (trusts).
Antitrust policy - Answer -Government policy designed to combat monopolies and cartels.
,appreciation - Answer -an increase of the value of currency
Attack - Answer -An initial set of actions to gain competitive advantage.
automatic stabilizers - Answer -changes in fiscal policy that stimulate aggregate demand when the
economy goes into a recession without policymakers having to take any deliberate action
Availability of close substitutes, necessities vs. luxuries, Definition of the market, time horizon -
Answer -Determinants of price elasticity of demand?
average fixed cost - Answer -fixed cost divided by the quantity of output
average revenue - Answer -total revenue divided by the quantity sold
average total cost - Answer -total cost divided by the quantity of output
average variable cost - Answer -variable cost divided by the quantity of output
Balance of payments - Answer -A country's international transaction statement, which includes
merchandise trade, service trade and capital movement.
Balance of Trade - Answer -The aggregation of importing and exporting that leads to the country-
level trade surplus or deficit.
Bandwagon effect - Answer -The effect of investors moving in the same direction at the same time,
like a herd.
bank capital - Answer -the resources a bank's owners have put into the institution
Bargaining power - Answer -Ability to extract favorable outcome from negotiations due to one
party's strengths.
Base of the pyramid (BOP) - Answer -Economies where people make less than $2,000 per capita
per year.
Beijing Consensus - Answer -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.
Bid rate - Answer -The price to buy a currency.
Blue ocean strategy - Answer -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."
Bounded rationality - Answer -The necessity of making rational decisions in the absence of
complete information.
Brazil, Mexico & South Korea - Answer -Countries currencies under managed float since 1990s?
, Bretton Woods system - Answer -A system in which all currencies were pegged at a fixed rate to
the US dollar.
BRICA - Answer -Brazil, Russia, India, and China.
budget constraint - Answer -the limit on the consumption bundles that a consumer can afford
Build-operate-transfer (BOT) agreement - Answer -A non-equity mode of entry used to build a
longer-term presence by building and then operating a facility for a period of time before transferring
operations to a domestic agency or firm.
Capacity to punish - Answer -Sufficient resources possessed by a price leader to deter and combat
defection.
Capital flight - Answer -A phenomenon in which a large number of individuals and companies
exchange domestic currency for a foreign currency.
capital requirement - Answer -a government regulation specifying a minimum amount of bank
capital
cartel - Answer -a group of firms acting in unison
Cartel (trust) - Answer -An output- and price-fixing entity involving multiple competitors.
central bank - Answer -an institution designed to oversee the banking system and regulate the
quantity of money in the economy
China - Answer -What country doesn't fix their currency?
Civil Law - Answer -A legal tradition that uses comprehensive statutes and codes as a primary
means to form legal judgments.
Classical trade theories - Answer -The major theories of international trade that were advanced
before the 20th century, which consist of (1) mercantilism, (2) absolute advantage, and (3) comparative
advantage.
Clean (free) float - Answer -A pure market solution to determine exchange rates.
Co-marketing - Answer -Efforts among a number of firms to jointly market their products and
services.
Cognitive pillar - Answer -The internalized (or taken-for-granted) values and beliefs that guide
individual and firm behavior.
collusion - Answer -an agreement among firms in a market about quantities to produce or prices
to charge
Collusion - Answer -Collective attempts between competing firms to reduce competition.
Managers Update Questions with Correct
Answers
"Four Tigers" - Answer -Hong Kong, Singapore, South Korea and Taiwan
65% - Answer -What % of the world's foreign exchange transactions are in USD$?
80% - Answer -What % of the world's foreign exchange transactions are in dollars?
Absolute advantage - Answer -The economic advantage one nation enjoys that is absolutely
superior to other nations.
Absolute Advantage - Answer -What theory has the strengths: Birth of modern economics,
forerunner of the free trade movement, defeats mercantilism intellectually?
Absolute Advantage - Answer -What theory has the weaknesses: when one nation is absolutely
inferior there is no advice, when there are many nations it may be difficult to find an absolute
advantage?
accounting profit - Answer -total revenue minus total explicit cost
accounting profit - Answer -total revenue minus total explicit cost
Administrative policy - Answer -Bureaucratic rules that make it harder to import foreign goods.
Agglomeration - Answer -Clustering of economic activities in certain locations.
aggregate demand - Answer -specifies the amounts of goods and services that will be purchased at
all possible price levels.
aggregate demand - Answer -the total demand for final goods and services in the economy at a
given time and price level.
Amount received by sellers - cost to sellers - Answer -Equation for producer surplus
antidumping duty - Answer -Tariffs levied on imports that have been "dumped" (selling below
costs to "unfairly" drive domestic firms out of business).
Antidumping law - Answer -Law that makes it illegal for an exporter to sell goods below cost
abroad with the intent to raise prices after eliminating local rivals.
Antitrust law - Answer -Law that outlaws cartels (trusts).
Antitrust policy - Answer -Government policy designed to combat monopolies and cartels.
,appreciation - Answer -an increase of the value of currency
Attack - Answer -An initial set of actions to gain competitive advantage.
automatic stabilizers - Answer -changes in fiscal policy that stimulate aggregate demand when the
economy goes into a recession without policymakers having to take any deliberate action
Availability of close substitutes, necessities vs. luxuries, Definition of the market, time horizon -
Answer -Determinants of price elasticity of demand?
average fixed cost - Answer -fixed cost divided by the quantity of output
average revenue - Answer -total revenue divided by the quantity sold
average total cost - Answer -total cost divided by the quantity of output
average variable cost - Answer -variable cost divided by the quantity of output
Balance of payments - Answer -A country's international transaction statement, which includes
merchandise trade, service trade and capital movement.
Balance of Trade - Answer -The aggregation of importing and exporting that leads to the country-
level trade surplus or deficit.
Bandwagon effect - Answer -The effect of investors moving in the same direction at the same time,
like a herd.
bank capital - Answer -the resources a bank's owners have put into the institution
Bargaining power - Answer -Ability to extract favorable outcome from negotiations due to one
party's strengths.
Base of the pyramid (BOP) - Answer -Economies where people make less than $2,000 per capita
per year.
Beijing Consensus - Answer -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.
Bid rate - Answer -The price to buy a currency.
Blue ocean strategy - Answer -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."
Bounded rationality - Answer -The necessity of making rational decisions in the absence of
complete information.
Brazil, Mexico & South Korea - Answer -Countries currencies under managed float since 1990s?
, Bretton Woods system - Answer -A system in which all currencies were pegged at a fixed rate to
the US dollar.
BRICA - Answer -Brazil, Russia, India, and China.
budget constraint - Answer -the limit on the consumption bundles that a consumer can afford
Build-operate-transfer (BOT) agreement - Answer -A non-equity mode of entry used to build a
longer-term presence by building and then operating a facility for a period of time before transferring
operations to a domestic agency or firm.
Capacity to punish - Answer -Sufficient resources possessed by a price leader to deter and combat
defection.
Capital flight - Answer -A phenomenon in which a large number of individuals and companies
exchange domestic currency for a foreign currency.
capital requirement - Answer -a government regulation specifying a minimum amount of bank
capital
cartel - Answer -a group of firms acting in unison
Cartel (trust) - Answer -An output- and price-fixing entity involving multiple competitors.
central bank - Answer -an institution designed to oversee the banking system and regulate the
quantity of money in the economy
China - Answer -What country doesn't fix their currency?
Civil Law - Answer -A legal tradition that uses comprehensive statutes and codes as a primary
means to form legal judgments.
Classical trade theories - Answer -The major theories of international trade that were advanced
before the 20th century, which consist of (1) mercantilism, (2) absolute advantage, and (3) comparative
advantage.
Clean (free) float - Answer -A pure market solution to determine exchange rates.
Co-marketing - Answer -Efforts among a number of firms to jointly market their products and
services.
Cognitive pillar - Answer -The internalized (or taken-for-granted) values and beliefs that guide
individual and firm behavior.
collusion - Answer -an agreement among firms in a market about quantities to produce or prices
to charge
Collusion - Answer -Collective attempts between competing firms to reduce competition.
