WGU Global-Economics-for-Managers

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

1. Which effect does increased government spending have on aggregate demand if the multiplier effect is greater than the crowding-out effect?

A) Aggregate demand decreases by more than the increase in government spending.
B) Aggregate demand decreases by less than the increase in government spending.
C) Aggregate demand increases by more than the increase in government spending.
D) Aggregate demand increases by less than the increase in government spending.

2. Which strategy for responding to multinational enterprises is appropriate in a situation in which there is low industry pressure to globalize and competitive assets are customized to home markets?

A) Contender strategy
B) Responder strategy
C) Retainer strategy
D) Defender strategy

3. What is true about tariffs?

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

4. Which factors increase a country's currency exchange value? Choose two answers.

A) A fall in population
B) Political unrest
C) A rise in productivity
D) A rise in the interest rate
E) A fall in productivity
F) A rise in inflation

5. What is one characteristic of a market shortage?

A) Quantity demanded is less than equilibrium quantity.
B) There is downward pressure on price.
C) Price is greater than the equilibrium price.
D) Quantity supplied is less than equilibrium quantity.

Solutions: