WGU C211 Global Economics for Managers Exam Questions with
Verified Answers (Correct Update)
Question 1: Administrative Policy
Answer: Bureaucratic rules that make it harder to import foreign goods.
Question 2: Agglomeration
Answer: Clustering of economic activities in certain locations. Beyond geographic advantages,
location-specific advantages also arise from the clustering of economic activities in certain
locations.
Question 3: Antidumping Duty
Answer: Tariffs levied on imports that have been "dumped" (selling below costs to "unfairly"
drive domestic firms out of business).
Question 4: 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.
Question 5: Antitrust Law
Answer: Law that outlaws cartels (trusts).
Question 6: Antitrust Policy
Answer: Government policy designed to combat monopolies and cartels.
Page 1
, Question 7: Attack
Answer: An initial set of actions to gain competitive advantage.
Question 8: 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
Question 9: Average fixed cost
Answer: Fixed cost divided by the quantity of output AFC = FC/Q
Question 10: Average Revenue
Answer: total revenue divided by the quantity sold
Question 11: Average total cost
Answer: Total cost divided by the quantity of output ATC = TC / Q
Question 12: Average variable cost
Answer: Variable cost divided by the quantity of output AVC = VC/Q
Question 13: Balance of payments
Answer: a country's international transaction statement.
Question 14: Balance of Trade
Answer: The aggregation of importing and exporting that leads to the country-level trade surplus
or deficit.
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Verified Answers (Correct Update)
Question 1: Administrative Policy
Answer: Bureaucratic rules that make it harder to import foreign goods.
Question 2: Agglomeration
Answer: Clustering of economic activities in certain locations. Beyond geographic advantages,
location-specific advantages also arise from the clustering of economic activities in certain
locations.
Question 3: Antidumping Duty
Answer: Tariffs levied on imports that have been "dumped" (selling below costs to "unfairly"
drive domestic firms out of business).
Question 4: 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.
Question 5: Antitrust Law
Answer: Law that outlaws cartels (trusts).
Question 6: Antitrust Policy
Answer: Government policy designed to combat monopolies and cartels.
Page 1
, Question 7: Attack
Answer: An initial set of actions to gain competitive advantage.
Question 8: 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
Question 9: Average fixed cost
Answer: Fixed cost divided by the quantity of output AFC = FC/Q
Question 10: Average Revenue
Answer: total revenue divided by the quantity sold
Question 11: Average total cost
Answer: Total cost divided by the quantity of output ATC = TC / Q
Question 12: Average variable cost
Answer: Variable cost divided by the quantity of output AVC = VC/Q
Question 13: Balance of payments
Answer: a country's international transaction statement.
Question 14: Balance of Trade
Answer: The aggregation of importing and exporting that leads to the country-level trade surplus
or deficit.
Page 2
