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

2. When is it best for a firm to increase production?

A) When marginal revenue is greater than marginal cost
B) When average cost is minimized
C) When total revenue is maximized
D) When marginal cost exceeds marginal revenue

3. In which situation is the contender strategy appropriate for responding to multinational enterprises (MNEs)?

A) There is low industry pressure to globalize, and competitive assets are customized to home markets.
B) There is high industry pressure to globalize, and competitive assets are transferable abroad.
C) There is high industry pressure to globalize, and competitive assets are customized to home markets.
D) There is low industry pressure to globalize, and competitive assets are transferable abroad.

4. Which protection of intellectual property is used for the design of a logo?

A) Patent
B) Trademark
C) Copyright
D) Trade secret

5. Which statement characterizes an institution-based view of global business?

A) Institutions, not firms, are the sole factor in explaining individual behavior.
B) Government regulations are the primary driver of institutional change.
C) Financial motivations are excluded from consideration in explaining the interactions between institutions and firms.
D) Firm behaviors are the outcome of interactions between institutions and firms.

Solutions: