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WGU Global Economics for Managers (C211, UZC2) Sample Questions:

1. An institution-based view of global business focuses on the specific relationship between which two entities?

A) Customers and institutions
B) Firms and governments
C) Customers and firms
D) Firms and institutions

2. Which pillar of formal institutions represents the coercive power of governments?

A) Normative
B) Cognitive
C) Cultural
D) Regulatory

3. What is the Nash equilibrium?

A) A situation in which economic actors interacting with one another each choose their best strategy from among all available strategies currently being used by said actors
B) A particular situation between two entities that illustrates why cooperation is difficult to maintain even when it is mutually beneficial
C) An agreement among firms in a market over production and price
D) A group of firms illegally acting in unison to improve profits or dominate a market

4. In a monopoly, which statements are likely true? (Choose TWO.)

A) Marginal revenue equals price
B) One seller offers a unique good with no close substitutes
C) There are barriers to entry into the market
D) Entry is free in the long run
E) Firms are price takers

5. Which scenario demonstrates a monopoly created by a resource?

A) An author copyrights a new book.
B) A bridge is so infrequently used that it has a large fixed cost and negligible marginal cost.
C) A software company copyrights the code for new software.
D) A new rare jewel is found, and only one mine in the world has it.

Solutions: