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

1. What is true about tariffs?

A) They lower domestic prices below world prices
B) They increase consumer surplus
C) They eliminate deadweight loss
D) They allow the government to raise revenue

2. What is the most basic way for nonfinancial companies to adjust to fluctuations of the foreign exchange market?

A) Forward transactions
B) Rate locks
C) Currency hedging
D) Invoicing customers in the company's currency

3. What is a tariff levied on imports that are selling below cost in order to unfairly drive domestic firms out of business?

A) Deadweight cost
B) Factor endowment
C) Antidumping duty
D) Opportunity cost

4. What is one of the two major exchange rate policies?

A) Fiscal rate
B) Floating rate
C) Discount rate
D) Matched rate

5. What is one of the elements of the Porter Diamond in the theory of national competitive advantage of industries?

A) Firm opportunity costs
B) Domestic demand conditions
C) Foreign supply markets
D) Trade deficits

Solutions: