WGU C211 OA GLOBAL ECONOMICS EXAM
() QUESTIONS AND VERIFIED
ANSWERS, 100% GUARANTEE PASS
"Evolutionary" cview con cglobalization A clong-run chistorical cevolution csince cthe cdawn
cof chuman chistory
"New" cview con cglobalization A cforce csweeping cthrough cthe cworld cin crecent ctimes.
"Pendulum" cview con cglobalization One cthat cswings cfrom cone cextreme cto canother cfrom
ctime cto ctime
3 ctypes cof celasticity, ctheir cequations, cpurpose cand coutcomes (1) cPrice celasticity cof
cdemand c- c% cchg cin cQ cD c/ c% cchg cin cP
(2) cIncome celasticity c- c% cchg cin cQ cD c/ c% cchg cin cincome c
(3) cCross-price celasticity c- c% cchg cin cQ cD cGood c1/% cchg cin cGood c#2 cP
Absolute cadvantage The ceconomic cadvantage cone cnation cenjoys cthat cis csuperior cto cother
cnations
Benefits cto ca ccountry creceiving cFDI Capital cInflow, cTechnology cSpillover, cAdvanced
cManagement cKnow-How, cJob ccreation
Budget cconstraint The cconsumption cbundles cthat cthe cconsumer ccan cafford.
Civil claw Law cthat cuses ccomprehensive cstatutes cand ccodes cas ca cprimary cmeans cto
cform clegal cjudgments.
Classical ctheories cof cinternational ctrade Mercantilism, cAbsolute cadvantage, cand
cComparative cadvantage
Classical ctheory cview Static
Cognitive cpillar The cinternalized, ctaken-for-granted cvalues cand cbeliefs cthat cguide
cbehavior. c(beliefs cbetween cright/wrong)
Command ceconomy One cthat cis cdefined cby ca cgovernment ctaking call cfactors cof cproduction
cto cbe cgovernment-owned cor cstate-owned, cand call csupply, cdemand, cand cpricing care cplanned
cby cthe cgovernment.
Common claw Law cshaped cby cprecedents cand ctraditions cfrom cprevious cjudicial cdecisions.
Comparative cadvantage The cadvantage cone ceconomic cactivity cnation cenjoys cin
ccomparison cwith cother cnations c(relative, cnot cabsolute)
, Consumer csurplus The camount ca cbuyer cis cwilling cto cpay cfor ca cgood cminus cthe camount
cthe cbuyer cactually cpays cfor cit
Costs cto ca ccountry creceiving cFDI Loss cof cSovereignty, cAdverse ceffects con ccompetition, c
Capital coutflow.
Cross-price celasticity A cmeasure cof chow cmuch cthe cquantity cdemanded cof cone cgood
cresponds cto ca cchange cin cthe cprice cof canother cgood. cComputed cas cthe cpercentage cchange
cin cquantity cdemanded cof cthe cfirst cgood cdivided cby cthe cpercentage cchange cin cprice cof cthe
csecond cgood. cSubstitutes=positive ccross-price celasticity; ccomplements=negative ccross-price
celasticity.
Currency chedging A cway cto cprotect ctraders cand cinvestors cfrom cbeing cexposed cto cthe
cfluctuations cof cthe cspot crate
Dead cweight closs. The cfall cin ctotal csurplus cthat cresults cfrom ca cmarket cdistortion, csuch cas
ca ctax c(new cequilibrium cprice cthat cis csettled cfor cthe ctransaction cwill cbe chigher cand
ctherefore csome cburden cof cthis cwill cbe cpassed con cto cthe cconsumer)
Demand ccurve cfor ca cmonopolistic cmarket Downward-sloping
Demand ccurve cfor ca cperfectly ccompetitive cfirm Horizontal cline
Democracy Citizens celect crepresentatives cto cgovern cthe ccountry con ctheir cbehalf.
Describe cthe cbasic cdistinctions cbetween cthe cmarket cmodels cwith crespect cto: cnumber cof
cmarket cparticipants, ctype cof cproduct cbeing cmarketed, cease cof centry/exit cinto cthe cmarket
cand cthe cprevalence cof cadvertising/marketing Monopoly cand cOligopoly chave cone cto
cfew cfirms, cwith climited cproducts c(cable cTV), centry cis cdifficult, cand cadvertising cis ca
cnatural cfeature. cMonopolistic ccompetition/perfect ccompetition chave cmany cfirms, cmono
ccomp chas cdifferentiated cproducts c(novels/movies) cand cperfect ccomp chas cidentical cproducts,
centry cis ceasy, cand cspend cvery clittle con cadvertising.
Discount crate The cinterest crate cbanks cpay cwhen cborrowing cfrom cthe cFederal cReserve.
Elastic Quantity cmoves cproportionately cmore cthan cthe cprice c(Price cincrease cresults cin
cdrastically clower cdemand).
Equity indicative cof crelatively clarger, charder-to-reverse ccommitments. cDetermines cfirms
cMNE cstatus.
Explain chow cthe cprice cof crelated cgoods cis crelated cto cchanges cin cthe cdemand ccurve? When
ca cfall cin cthe cprice cof cone cgood creduces cthe cdemand cfor canother cgood, cthe ctwo cgoods care
ccalled csubstitutes c(yogurt cfor cice ccream). c
When ca cfall cin cthe cprice cof cone cgood craises cthe cdemand cfor canother cgood, cthe ctwo cgoods
care ccalled ccomplements c(hot cfudge cand cice ccream).
() QUESTIONS AND VERIFIED
ANSWERS, 100% GUARANTEE PASS
"Evolutionary" cview con cglobalization A clong-run chistorical cevolution csince cthe cdawn
cof chuman chistory
"New" cview con cglobalization A cforce csweeping cthrough cthe cworld cin crecent ctimes.
"Pendulum" cview con cglobalization One cthat cswings cfrom cone cextreme cto canother cfrom
ctime cto ctime
3 ctypes cof celasticity, ctheir cequations, cpurpose cand coutcomes (1) cPrice celasticity cof
cdemand c- c% cchg cin cQ cD c/ c% cchg cin cP
(2) cIncome celasticity c- c% cchg cin cQ cD c/ c% cchg cin cincome c
(3) cCross-price celasticity c- c% cchg cin cQ cD cGood c1/% cchg cin cGood c#2 cP
Absolute cadvantage The ceconomic cadvantage cone cnation cenjoys cthat cis csuperior cto cother
cnations
Benefits cto ca ccountry creceiving cFDI Capital cInflow, cTechnology cSpillover, cAdvanced
cManagement cKnow-How, cJob ccreation
Budget cconstraint The cconsumption cbundles cthat cthe cconsumer ccan cafford.
Civil claw Law cthat cuses ccomprehensive cstatutes cand ccodes cas ca cprimary cmeans cto
cform clegal cjudgments.
Classical ctheories cof cinternational ctrade Mercantilism, cAbsolute cadvantage, cand
cComparative cadvantage
Classical ctheory cview Static
Cognitive cpillar The cinternalized, ctaken-for-granted cvalues cand cbeliefs cthat cguide
cbehavior. c(beliefs cbetween cright/wrong)
Command ceconomy One cthat cis cdefined cby ca cgovernment ctaking call cfactors cof cproduction
cto cbe cgovernment-owned cor cstate-owned, cand call csupply, cdemand, cand cpricing care cplanned
cby cthe cgovernment.
Common claw Law cshaped cby cprecedents cand ctraditions cfrom cprevious cjudicial cdecisions.
Comparative cadvantage The cadvantage cone ceconomic cactivity cnation cenjoys cin
ccomparison cwith cother cnations c(relative, cnot cabsolute)
, Consumer csurplus The camount ca cbuyer cis cwilling cto cpay cfor ca cgood cminus cthe camount
cthe cbuyer cactually cpays cfor cit
Costs cto ca ccountry creceiving cFDI Loss cof cSovereignty, cAdverse ceffects con ccompetition, c
Capital coutflow.
Cross-price celasticity A cmeasure cof chow cmuch cthe cquantity cdemanded cof cone cgood
cresponds cto ca cchange cin cthe cprice cof canother cgood. cComputed cas cthe cpercentage cchange
cin cquantity cdemanded cof cthe cfirst cgood cdivided cby cthe cpercentage cchange cin cprice cof cthe
csecond cgood. cSubstitutes=positive ccross-price celasticity; ccomplements=negative ccross-price
celasticity.
Currency chedging A cway cto cprotect ctraders cand cinvestors cfrom cbeing cexposed cto cthe
cfluctuations cof cthe cspot crate
Dead cweight closs. The cfall cin ctotal csurplus cthat cresults cfrom ca cmarket cdistortion, csuch cas
ca ctax c(new cequilibrium cprice cthat cis csettled cfor cthe ctransaction cwill cbe chigher cand
ctherefore csome cburden cof cthis cwill cbe cpassed con cto cthe cconsumer)
Demand ccurve cfor ca cmonopolistic cmarket Downward-sloping
Demand ccurve cfor ca cperfectly ccompetitive cfirm Horizontal cline
Democracy Citizens celect crepresentatives cto cgovern cthe ccountry con ctheir cbehalf.
Describe cthe cbasic cdistinctions cbetween cthe cmarket cmodels cwith crespect cto: cnumber cof
cmarket cparticipants, ctype cof cproduct cbeing cmarketed, cease cof centry/exit cinto cthe cmarket
cand cthe cprevalence cof cadvertising/marketing Monopoly cand cOligopoly chave cone cto
cfew cfirms, cwith climited cproducts c(cable cTV), centry cis cdifficult, cand cadvertising cis ca
cnatural cfeature. cMonopolistic ccompetition/perfect ccompetition chave cmany cfirms, cmono
ccomp chas cdifferentiated cproducts c(novels/movies) cand cperfect ccomp chas cidentical cproducts,
centry cis ceasy, cand cspend cvery clittle con cadvertising.
Discount crate The cinterest crate cbanks cpay cwhen cborrowing cfrom cthe cFederal cReserve.
Elastic Quantity cmoves cproportionately cmore cthan cthe cprice c(Price cincrease cresults cin
cdrastically clower cdemand).
Equity indicative cof crelatively clarger, charder-to-reverse ccommitments. cDetermines cfirms
cMNE cstatus.
Explain chow cthe cprice cof crelated cgoods cis crelated cto cchanges cin cthe cdemand ccurve? When
ca cfall cin cthe cprice cof cone cgood creduces cthe cdemand cfor canother cgood, cthe ctwo cgoods care
ccalled csubstitutes c(yogurt cfor cice ccream). c
When ca cfall cin cthe cprice cof cone cgood craises cthe cdemand cfor canother cgood, cthe ctwo cgoods
care ccalled ccomplements c(hot cfudge cand cice ccream).
