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

1. Who are the primary and largest participants in the foreign exchange market?

A) Central banks
B) Large international banks
C) Individual currency traders
D) Multinational manufacturing firms

2. What is one of the OLI advantages outlined by John Dunning for why firms become multinational enterprises by engaging in foreign direct investment?

A) Internalization advantages
B) Ownership advantages
C) Location advantages
D) Competitive neutrality

3. Which statement is a description of theocratic law?

A) It is a legal system that is the oldest, most influential, and most widely distributed in the world.
B) It is a legal system that is shaped by precedents and traditions from previous judicial decisions.
C) It is a legal system based on religious teachings and dogma.
D) It is a legal system that uses comprehensive statutes and codes as a primary means to form legal judgments.

4. What is the most basic way for nonfinancial companies to adjust to fluctuations of the foreign exchange market?

A) Invoicing customers in the company's currency
B) Currency hedging
C) Rate locks
D) Forward transactions

5. The formula "fixed costs (FC) + variable costs (VC)" represents which quantity?

A) Total cost
B) Marginal cost
C) Average cost
D) Implicit cost

Solutions: