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

1. What is the necessity of making sensible decisions in the absence of complete information called?

A) Moral hazard
B) Adverse selection
C) Perfect rationality
D) Bounded rationality

2. When there is an expectation of lower income in the future, what is the effect on the demand curve for a normal good?

A) The demand curve shifts down.
B) The demand curve shifts up.
C) The demand curve shifts left.
D) The demand curve shifts right.

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

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

4. Which good tends to have elastic demand?

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

5. What is one benefit of small-scale entries into foreign markets?

A) They focus on learning by doing while limiting the downside risk.
B) They present easy opportunities to build market share.
C) They demonstrate a strategic commitment to certain markets.
D) They give complete equity and operational control.

Solutions: