C211 WGU OA GLOBAL ECONOMICS
FOR MANAGERS BEST STUDYNG MATERAL
LATEST UPDATE WITH QUESTONS AND
VERIFIEID ANSWERS NEW VERSION GRADED
Which political view of foreign direct investment (FDI) is most widely used by
governments in the current international business environment?
- ANSWER Protectionism
Which factors credit the degree of rivalry between a pair of competitors? 2 choices -
ANSWER Market Commonality
Cost Structure
Which factors credit how local firms in emerging economics will respond to multinational
competitors?
- ANSWER Competitive assets and industry pressures to globalize
During which stage of the product life cycle do sales and profits gradually increase
before seeing more dramatic increases?
- ANSWER Growth
Which factor determines the foreign exchange rate of any currency? - ANSWER Supply
and demand for the currency
Which risk must corporation minimize if it is to effectively manage short-term currency
fluctuations?
- ANSWER Transaction Risk
Which policy does a country use to determine the exchange rate of their currency in
relationship to another country's currency if they do not rely on market forces? -
ANSWER Fixed Rate Policy
Which term refers to trading currencies and currency derivatives in order to earn profits
and help make prices efficient? - ANSWER Brokering
Which type of advantage is gained by a company based on where it operates? -
ANSWER Location-Specific
Who gains from erecting significant entry barriers for other entrants? - ANSWER First
Movers
,Which strategy for entering into a foreign market has the lowest degree of risk? -
ANSWER Licensing
What is a non-equity mode involving some type of contractual agreement
? - ANSWER Licensing
After the Lehman Brothers collapse, the federal Reserve stood ready to lend financial
institutions funds. When the Federal reserve did this, it was acting in its role as a lender
of last resort. Which type of group has this role?
- ANSWER Non Governmental Organization
What is the comprehensive free-trade settlement among Canada, US, and Mexico, that
address issues of protecting workers rights, the environment and reducing tariffs and
non-tariff trade barriers? –
ANSWER NAFTA
What is one of the core propositions underpinning an institution-based view of global
business? –
ANSWER Managers and corporations make rational decisions within their formal and
informal framework
Which type of system allows businesses to be privately owned with a strong
individualistic profit orientation?
- ANSWER Market economy
Which legal system is based on a religious document and religious teachings? -
ANSWER Theocratic Law
Which type of good has well-established property rights?
- ANSWER Private Goods
Which activity disregards basic property rights? - ANSWER Students play loud music in
the open area between dorms
What is one type of economy that uses the market system? - ANSWER Mixed Economy
Which kind of outcome was Adam Smith referring to when describing the invisible
hand?
- ANSWER Market Outcomes
What does the value of the marginal product of labor for a perfectly competitive, profit
maximizing firm equal?
- ANSWER Wage
What is the change in total cost equal to? - ANSWER Marginal Cost multiplied by
change in quantity
, Which condition must be satisfied for a competitive firm to shut down in a short run? -
ANSWER Total variable costs are greater than total revenue
What will a competitive firm do in the short run if its average variable cost exceeds
price?
- ANSWER It will shut down
What is a characteristic of a monopoly demand curve?
- ANSWER It is the same as the market demand curve
Which statement describes a monopoly's demand curve? - ANSWER It is less elastic
than a perfectly competitive firms demand curve
What is the profit maximization condition for a monopoly?
- ANSWER Where marginal revenue equals marginal cost
What is a characteristic of monopolistic competition?
- ANSWER Many firms sell differentiated products
How does self-interest influence each prisoner's decision in the prisoner's dilemma? -
ANSWER Neither prisoner will confess
Why is studying the prisoners dilemma applicable to business?
- ANSWER It demonstrates the value of mapping out potential strategy given actions of
rivals
What does an indifference curve illustrate?
- ANSWER The preferences of a consumer
What happens to an individual's budget constraint if the budget decreases and prices
remain the same?
- ANSWER The budget constraints line shifts parallel inward
What happens to the nominal interest rate and the quantity of money if the Federal
Reserve increase the reserve requirement? Chose 2 answers
- ANSWER The interest rate increases
The quantity of money decreases
What will happen to the equilibrium in the market for a good if demand and supply
increase simultaneously?
- ANSWER Equilibrium quantity will always increase
What concept measures how much the quantity supplied responds to change in price? -
ANSWER Price elasticity of supply
FOR MANAGERS BEST STUDYNG MATERAL
LATEST UPDATE WITH QUESTONS AND
VERIFIEID ANSWERS NEW VERSION GRADED
Which political view of foreign direct investment (FDI) is most widely used by
governments in the current international business environment?
- ANSWER Protectionism
Which factors credit the degree of rivalry between a pair of competitors? 2 choices -
ANSWER Market Commonality
Cost Structure
Which factors credit how local firms in emerging economics will respond to multinational
competitors?
- ANSWER Competitive assets and industry pressures to globalize
During which stage of the product life cycle do sales and profits gradually increase
before seeing more dramatic increases?
- ANSWER Growth
Which factor determines the foreign exchange rate of any currency? - ANSWER Supply
and demand for the currency
Which risk must corporation minimize if it is to effectively manage short-term currency
fluctuations?
- ANSWER Transaction Risk
Which policy does a country use to determine the exchange rate of their currency in
relationship to another country's currency if they do not rely on market forces? -
ANSWER Fixed Rate Policy
Which term refers to trading currencies and currency derivatives in order to earn profits
and help make prices efficient? - ANSWER Brokering
Which type of advantage is gained by a company based on where it operates? -
ANSWER Location-Specific
Who gains from erecting significant entry barriers for other entrants? - ANSWER First
Movers
,Which strategy for entering into a foreign market has the lowest degree of risk? -
ANSWER Licensing
What is a non-equity mode involving some type of contractual agreement
? - ANSWER Licensing
After the Lehman Brothers collapse, the federal Reserve stood ready to lend financial
institutions funds. When the Federal reserve did this, it was acting in its role as a lender
of last resort. Which type of group has this role?
- ANSWER Non Governmental Organization
What is the comprehensive free-trade settlement among Canada, US, and Mexico, that
address issues of protecting workers rights, the environment and reducing tariffs and
non-tariff trade barriers? –
ANSWER NAFTA
What is one of the core propositions underpinning an institution-based view of global
business? –
ANSWER Managers and corporations make rational decisions within their formal and
informal framework
Which type of system allows businesses to be privately owned with a strong
individualistic profit orientation?
- ANSWER Market economy
Which legal system is based on a religious document and religious teachings? -
ANSWER Theocratic Law
Which type of good has well-established property rights?
- ANSWER Private Goods
Which activity disregards basic property rights? - ANSWER Students play loud music in
the open area between dorms
What is one type of economy that uses the market system? - ANSWER Mixed Economy
Which kind of outcome was Adam Smith referring to when describing the invisible
hand?
- ANSWER Market Outcomes
What does the value of the marginal product of labor for a perfectly competitive, profit
maximizing firm equal?
- ANSWER Wage
What is the change in total cost equal to? - ANSWER Marginal Cost multiplied by
change in quantity
, Which condition must be satisfied for a competitive firm to shut down in a short run? -
ANSWER Total variable costs are greater than total revenue
What will a competitive firm do in the short run if its average variable cost exceeds
price?
- ANSWER It will shut down
What is a characteristic of a monopoly demand curve?
- ANSWER It is the same as the market demand curve
Which statement describes a monopoly's demand curve? - ANSWER It is less elastic
than a perfectly competitive firms demand curve
What is the profit maximization condition for a monopoly?
- ANSWER Where marginal revenue equals marginal cost
What is a characteristic of monopolistic competition?
- ANSWER Many firms sell differentiated products
How does self-interest influence each prisoner's decision in the prisoner's dilemma? -
ANSWER Neither prisoner will confess
Why is studying the prisoners dilemma applicable to business?
- ANSWER It demonstrates the value of mapping out potential strategy given actions of
rivals
What does an indifference curve illustrate?
- ANSWER The preferences of a consumer
What happens to an individual's budget constraint if the budget decreases and prices
remain the same?
- ANSWER The budget constraints line shifts parallel inward
What happens to the nominal interest rate and the quantity of money if the Federal
Reserve increase the reserve requirement? Chose 2 answers
- ANSWER The interest rate increases
The quantity of money decreases
What will happen to the equilibrium in the market for a good if demand and supply
increase simultaneously?
- ANSWER Equilibrium quantity will always increase
What concept measures how much the quantity supplied responds to change in price? -
ANSWER Price elasticity of supply
