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

1. What is purchasing power parity (PPP)?

A) The idea that a country ' s exchange rate is an indicator of socioeconomic well-being
B) A theory suggesting that the price for identical products sold in different countries must be the same in the absence of trade barriers
C) The gain from taking advantage of inefficient exchange rates
D) The movement of investors in the same direction at the same time

2. What is true about tariffs?

A) They increase the domestic quantity demanded.
B) They lower the price of affected imported goods below the world price.
C) They increase the quantity of imports.
D) They encourage consumers to reduce their consumption.

3. What is the definition of globalization?

A) The spread of regulatory influence to a greater pool of subjects
B) The close integration of countries and peoples of the world
C) The achievement of a one-world market for goods and services
D) The development of custom products for each segment of a population

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

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

5. Which statement best summarizes the overall economic effect of tariffs?

A) They benefit consumers more than producers
B) They eliminate inefficiencies in global trade
C) They increase total economic surplus
D) They transfer surplus from consumers to producers and the government

Solutions: