WGU C211 OBJECTIVE ASSESSMENT GLOBAL
ECONOMICS FOR MANAGERS EXAMINATION
TEST 2026
◉ Gross National Product (GNP) Answer: GDP plus income from
non-resident sources abroad
◉ On what is the institution-based view of global business
grounded? What core propositions lie at the root of this view?
Answer: A leading perspective in global business that suggests that
the success and failure of firms are enabled and constrained by
institutions
Prop1- Managers and firms rationally pursue their interest and
make choices within formal and informal institutional framework.
Prop2- When formal constraints are unclear or fail, informal
constraints will play a larger role
◉ How is global business affected by democracy? Answer: There is
freedom of expression and economic expression, you have the right
to set up a firm whether domestically or internationally.
◉ How is global business affected by totalitarianism? Answer: Not as
good for business, these countries often experience higher political
risks.
,◉ What are the differences between democracy and totalitarianism?
Answer: The political system is completely different, in a democracy
the government is chosen by the people and in a totalitarianism the
government is made up of a single person or party.
◉ Explain the core features of civil, common and theocratic law?
How do they compare? Answer: Civil law: A legal tradition that uses
comprehensive statues and codes as a primary means to form legal
adjustments (80 plus countries)
Common Law: A legal tradition that is shaped by precedents and
traditions from previous judicial decisions.
Theocratic law: A legal system based on religious teachings.
◉ What is a property right? In what way are property rights
essential? Answer: Property rights: The legal rights to use an
economic property(resource) and to derive income and benefits
from it. What the developing world lacks and desperately needs is
formal protection of property rights in order to facilitate economic
growth.
◉ What is an intellectual property right? Answer: An intangible
property that is the result of intellectual activity. IP rights are rights
associated with the ownership of intellectual property; like patents,
copyrights, and trademarks.
, ◉ Contrast the market, command, and mixed economy types.
Answer: Market- an economy that is characterized by the 'invisible
hand' of market forces, a hand forces a hands-off approach.
◉ What is an indifference curve? Answer: A curve that shows
consumption bundles that give the consumer the same satisfaction.
The slope at any point on indifference curve equals the rate at which
the consumer is willing to substitute on a good for the other, this
rate is called the marginal rate of substitution(MRS): The rate at
which a consumer is willing to trade one good for another. The MRS
is the slope of the curve.
◉ What are the four properties of an indifference curve? Answer: 1)
Higher indiffernce curves are preffered to lower ones, people usually
prefer to consume more rather than less.
2)Indifference curves are downward sloping, in most cases the
consumer likes both goods, so if the quantity of one good is reduced
the other good must increase.
3)Indifference curves do not cross
4)Indifference curves are bowed inward, the bowed shape of the
Indifference curve reflects the consumer's greater willingness to
give up a good that they already have in large quantity.
◉ Explain marginal rate of substitution. Answer: The rate at which a
consumer can give up some amount of one good in exchange for
another good while maintaining the same level of utility.
ECONOMICS FOR MANAGERS EXAMINATION
TEST 2026
◉ Gross National Product (GNP) Answer: GDP plus income from
non-resident sources abroad
◉ On what is the institution-based view of global business
grounded? What core propositions lie at the root of this view?
Answer: A leading perspective in global business that suggests that
the success and failure of firms are enabled and constrained by
institutions
Prop1- Managers and firms rationally pursue their interest and
make choices within formal and informal institutional framework.
Prop2- When formal constraints are unclear or fail, informal
constraints will play a larger role
◉ How is global business affected by democracy? Answer: There is
freedom of expression and economic expression, you have the right
to set up a firm whether domestically or internationally.
◉ How is global business affected by totalitarianism? Answer: Not as
good for business, these countries often experience higher political
risks.
,◉ What are the differences between democracy and totalitarianism?
Answer: The political system is completely different, in a democracy
the government is chosen by the people and in a totalitarianism the
government is made up of a single person or party.
◉ Explain the core features of civil, common and theocratic law?
How do they compare? Answer: Civil law: A legal tradition that uses
comprehensive statues and codes as a primary means to form legal
adjustments (80 plus countries)
Common Law: A legal tradition that is shaped by precedents and
traditions from previous judicial decisions.
Theocratic law: A legal system based on religious teachings.
◉ What is a property right? In what way are property rights
essential? Answer: Property rights: The legal rights to use an
economic property(resource) and to derive income and benefits
from it. What the developing world lacks and desperately needs is
formal protection of property rights in order to facilitate economic
growth.
◉ What is an intellectual property right? Answer: An intangible
property that is the result of intellectual activity. IP rights are rights
associated with the ownership of intellectual property; like patents,
copyrights, and trademarks.
, ◉ Contrast the market, command, and mixed economy types.
Answer: Market- an economy that is characterized by the 'invisible
hand' of market forces, a hand forces a hands-off approach.
◉ What is an indifference curve? Answer: A curve that shows
consumption bundles that give the consumer the same satisfaction.
The slope at any point on indifference curve equals the rate at which
the consumer is willing to substitute on a good for the other, this
rate is called the marginal rate of substitution(MRS): The rate at
which a consumer is willing to trade one good for another. The MRS
is the slope of the curve.
◉ What are the four properties of an indifference curve? Answer: 1)
Higher indiffernce curves are preffered to lower ones, people usually
prefer to consume more rather than less.
2)Indifference curves are downward sloping, in most cases the
consumer likes both goods, so if the quantity of one good is reduced
the other good must increase.
3)Indifference curves do not cross
4)Indifference curves are bowed inward, the bowed shape of the
Indifference curve reflects the consumer's greater willingness to
give up a good that they already have in large quantity.
◉ Explain marginal rate of substitution. Answer: The rate at which a
consumer can give up some amount of one good in exchange for
another good while maintaining the same level of utility.
