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WGU Global Economics for Managers (C211, UZC2) Sample Questions:
1. Institutions exist to reduce uncertainty. An institutional framework is made up of two types of systems.
What are the systems? (Choose TWO.)
A) Cognitive
B) Informal
C) Personal
D) Normative
E) Formal
F) Firm
2. What is one of the elements of the Porter Diamond in the theory of national competitive advantage of industries?
A) Trade deficits
B) Domestic demand conditions
C) Firm opportunity costs
D) Foreign supply markets
3. What is a characteristic of a market economy?
A) It is defined by a government taking the authoritative role in the economy.
B) Factors of production are government-owned or state-owned.
C) The government takes a hands-off approach known as laissez-faire.
D) It found a near ideal in China and the former Soviet Union during the heydays of communism.
4. The marginal revenue from producing a smartphone is $200, and the marginal cost is $150. What is the best action for the firm?
A) Pause production
B) Increase production
C) Decrease production
D) Exit the market altogether
5. Which characteristics are attributed to a democracy? (Choose THREE.)
A) It prohibits private ownership.
B) It concentrates power in a single ruling party.
C) It extends the right to organize economically to domestic and foreign firms.
D) It prizes freedom of expression and organization.
E) It contains political risk that is lower than in other political systems.
Solutions:
| Question # 1 Answer: B,E | Question # 2 Answer: B | Question # 3 Answer: C | Question # 4 Answer: B | Question # 5 Answer: C,D,E |



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