WGU C211 OA Global Economics Exam
Latest Questions with Verified Answers
Question 1
Which of the following policies can the Fed follow to increase the money supply?
Correct Answer
Reduce the interest rate on reserves
Question 2
Risk analysis of any country must include an analysis of the country's:
Correct Answer
currency risks
Question 3
Which of the following is an equity mode of entry?
Correct Answer
Wholly owned subsidiaries
Question 4
The price elasticity of demand measures
Correct Answer
buyers' responsiveness to a change in the price of a good.
Question 5
Miami is an ideal city for both North American firms looking to expand their business
to Central and South America and for Latin American companies to expand their
business to North America. This is an example of a(n):
Correct Answer
location-specific advantage.
Page 1 of 105
,Question 6
Globalization can be viewed as:
Correct Answer
A new force sweeping through the world in recent times.
A long-run historical evolution since the dawn of human history.
A pendulum that swings from one extreme to another from time to time.
Question 7
What are the possible benefits of being a late mover?
Correct Answer
Opportunity to free ride on first-mover investments
First mover's difficulty to adapt to market changes
Resolution of technological and market uncertainty
Question 8
The _____ theory viewed international trade as a zero-sum game.
Correct Answer
mercantilism
Question 9
The price leader's _____ is defined as sufficient resources possessed to deter and
combat defection.
Correct Answer
capacity to punish
Question 10
Which of the following is true of globalization according to the "pendulum view"
perspective?
Correct Answer
Globalization is a not a one-directional phenomenon.
Page 2 of 105
,Question 11
Whenever a perfectly competitive firm chooses to change its level of output, its
marginal revenue
Correct Answer
does not change.
Question 12
Which economic system is the most common?
Correct Answer
A mixed economy
Question 13
What are the possible benefits of being a late mover?
Correct Answer
Opportunity to free ride on first-mover investments
First mover's difficulty to adapt to market changes
Resolution of technological and market uncertainty
Question 14
OLI advantages refer to a firm's quest for _____via FDI.
Correct Answer
ownership advantages, location advantages, and internalization advantages
Question 15
The _____ principle advocated that governments should actively protect domestic
industries from imports and vigorously promote exports.
Correct Answer
protectionism
Page 3 of 105
, Question 16
The _____ of globalization suggests that globalization is neither recent nor one-
directional.
Correct Answer
pendulum view
Question 17
Which of the following is NOT a nontariff trade barrier (NTB)?
Correct Answer
Cultural distance
Question 18
Which of the following conditions is characteristic of a monopolistically competitive
firm in both the short run and the long run?
Correct Answer
P > MC
Question 19
In a simple circular-flow diagram, total income and total expenditure are
Correct Answer
always equal because every transaction has a buyer and a seller.
Question 20
According to the theory of absolute advantage, under free trade,
Correct Answer
Each nation gains by specializing in economic activities in which a nation has
absolute advantage.
Page 4 of 105
Latest Questions with Verified Answers
Question 1
Which of the following policies can the Fed follow to increase the money supply?
Correct Answer
Reduce the interest rate on reserves
Question 2
Risk analysis of any country must include an analysis of the country's:
Correct Answer
currency risks
Question 3
Which of the following is an equity mode of entry?
Correct Answer
Wholly owned subsidiaries
Question 4
The price elasticity of demand measures
Correct Answer
buyers' responsiveness to a change in the price of a good.
Question 5
Miami is an ideal city for both North American firms looking to expand their business
to Central and South America and for Latin American companies to expand their
business to North America. This is an example of a(n):
Correct Answer
location-specific advantage.
Page 1 of 105
,Question 6
Globalization can be viewed as:
Correct Answer
A new force sweeping through the world in recent times.
A long-run historical evolution since the dawn of human history.
A pendulum that swings from one extreme to another from time to time.
Question 7
What are the possible benefits of being a late mover?
Correct Answer
Opportunity to free ride on first-mover investments
First mover's difficulty to adapt to market changes
Resolution of technological and market uncertainty
Question 8
The _____ theory viewed international trade as a zero-sum game.
Correct Answer
mercantilism
Question 9
The price leader's _____ is defined as sufficient resources possessed to deter and
combat defection.
Correct Answer
capacity to punish
Question 10
Which of the following is true of globalization according to the "pendulum view"
perspective?
Correct Answer
Globalization is a not a one-directional phenomenon.
Page 2 of 105
,Question 11
Whenever a perfectly competitive firm chooses to change its level of output, its
marginal revenue
Correct Answer
does not change.
Question 12
Which economic system is the most common?
Correct Answer
A mixed economy
Question 13
What are the possible benefits of being a late mover?
Correct Answer
Opportunity to free ride on first-mover investments
First mover's difficulty to adapt to market changes
Resolution of technological and market uncertainty
Question 14
OLI advantages refer to a firm's quest for _____via FDI.
Correct Answer
ownership advantages, location advantages, and internalization advantages
Question 15
The _____ principle advocated that governments should actively protect domestic
industries from imports and vigorously promote exports.
Correct Answer
protectionism
Page 3 of 105
, Question 16
The _____ of globalization suggests that globalization is neither recent nor one-
directional.
Correct Answer
pendulum view
Question 17
Which of the following is NOT a nontariff trade barrier (NTB)?
Correct Answer
Cultural distance
Question 18
Which of the following conditions is characteristic of a monopolistically competitive
firm in both the short run and the long run?
Correct Answer
P > MC
Question 19
In a simple circular-flow diagram, total income and total expenditure are
Correct Answer
always equal because every transaction has a buyer and a seller.
Question 20
According to the theory of absolute advantage, under free trade,
Correct Answer
Each nation gains by specializing in economic activities in which a nation has
absolute advantage.
Page 4 of 105
