WGU C211 GLOBAL ECONOMICS FOR MANAGERS EXAM 100 QUESTIONS AND VERIFIED ANSWERS .
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Course
WGU C211
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WGU C211
WGU C211 GLOBAL ECONOMICS FOR MANAGERS EXAM 100 QUESTIONS AND VERIFIED ANSWERS .
Base if the Pyramid - ANSWEREconomies where people make less that $2000 per capita a year
BRIC - ANSWERBrazil, Russia, India, China
Can you summarize the 3 types of elasticity, their equations, purpose and o...
WGU C211 GLOBAL ECONOMICS FOR MANAGERS
EXAM 100 QUESTIONS AND VERIFIED ANSWERS
2024-2025.
Base if the Pyramid - ANSWEREconomies where people make less that $2000 per
capita a year
BRIC - ANSWERBrazil, Russia, India, China
Can you summarize the 3 types of elasticity, their equations, purpose and
outcomes? - ANSWERIncome elasticity= change in demanded
percentage/percentage change in income. Demand of good responds to a change
in consumers income Normal good=positive income elasticity Inferior
good=negative income elasticity
Cross-Price= %change in demand of good 1/% change in the price of another
good. Coke vs Pepsi.. Coke price goes up more people buy Pepsi. Substitutes
end with positive elasticity
Price elasticity=% change in quantity demanded/percentage change in price
Measure how much the quantity supplied of a good responds to a change in the
price of that good.
Compare absolute advantage to comparative advantage. What differences exist? -
ANSWERAbsolute advantage is the ability of an individual, firm or country to
produce more of a good or service than competitors when using the same
amount of resources. (WinWin)
Comparative advantage is the ability of an individual, firm or country to produce a
good or service at a lower opportunity cost than other producers. (Opportunity
cost)
Compare formal and informal institutions. - ANSWERFormal- Laws,Regulations
and rules (Regulatory)
Informal- Rules are not formalized, values (Normative,Cognitive)
Consider the model of foreign market entries. How is scale-of-entry
related/relevant? - ANSWEREquity vs non-equity modes of entry, how much you
are willing to commit to entering the foreign market. Scale of entry is the amount
of resources committed to entering a foreign market.
Contrast the market, command, and mixed economy types. - ANSWERMarket- an
economy that is characterized by the 'invisible hand' of market forces, a hand
forces a hands-off approach.
, Define gross domestic product(GPD). What does it measure? - ANSWERThe
market value of all final goods and service produced within a country in a given
period of time.
Describe the basic distinctions between the market models with respect to:
Number of market participants, type of product being marketed, ease of entry/exit
into the market, and the prevalence of advertising/marketing. - ANSWERPurely
competitve- large number of participants, agricultural products, low barrier to
entry.
Monopolistiv competition- large number of participants attempting to get ahead
through differentiating, consumer goods, low barrier to entry/exit.
Pure monopoly- Few participants high barriers to entry/exit
Describe the four components of GDP and explain how they affect aggregate
demand. - ANSWER(1)Consumption: can change for a number of reasons,
including movements in income, taxes, expectations about future income, and
changes in wealth levels
(2) Investment: Can change in response to its expected profitibility, which in turn
is shaped by expectations about future economic growth, the creation of new
technologies, the price of key inputs, and tax incentives for investment.
Investment can also change when interest rates rise or fall.
(3) Government Purchases: Spending and taxes are determined by political
considerations
(4) Net exports: Exports and imports change according to relative growth rates
and prices between two economies.
Discuss and compare the three pillars (regulatory,normative, and cognitive) -
ANSWERRegulatory- the coercive power of governments
Normative- how the values, beliefs and actions of other relevant players known as
norms influence the behavior of local individuals and firms.
Cognitive- refers to the internalized, taken for granted values and beliefs that
guide individual and firm behavior.
Explain dead weight loss - ANSWERLost economic activity that occurs as a result
of market inefficiency
Explain how the price of related goods is related to changes in the demand
curve? - ANSWERWhen a fall in the price of one good reduces the demand for
another good, the two goods are called substitutes. Increase in demand=right
shift, decrease in demand=left shift. When a fall in the price of one good raises
the demand for another good, the two gods ae called compliments.
Explain marginal rate of substitution. - ANSWERThe rate at which a consumer
can give up some amount of one good in exchange for another good while
maintaining the same level of utility.
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