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

1. Which company has a natural resource-seeking strategic goal?

A) A company searching for a location with a large consumer market
B) A company searching for a location with advanced technology clusters
C) A company searching for a location where labor costs are low
D) A company searching for a location where there is an abundance of oil

2. Which good tends to have elastic demand?

A) A good with close substitutes
B) A good with few complements
C) A good that is tangible
D) A good with many complements

3. A country has experienced a decrease in inflation. What is the effect on the country's currency exchange rate?

A) It becomes unstable
B) It depreciates
C) It increases
D) It has no effect

4. What does the term resource mobility describe?

A) An economic condition in which a nation exports more than it imports
B) The assumption that a resource removed from one industry can be moved to another
C) The idea that governments should actively defend domestic industries from imports and vigorously promote the export of resources
D) The idea that market forces should determine how much to trade with little or no government intervention

5. Which statements concerning property rights are true? (Choose TWO.)

A) Securing property rights results in industries that employ little fixed capital and avoid long-term investment.
B) Insecure property rights bode well in global competition where firms benefit from economies of scale and sustained R & D.
C) Property rights are the legal rights regarding the use of an economic resource and for deriving income and benefits from it.
D) The primary purpose of establishing property rights is to provide economic benefit to society as a whole.
E) Developing countries can achieve economic growth even without securing property rights.
F) Protection of property rights is commonly recognized as a major factor in allowing developing countries to make gains toward economic progress.

Solutions: