WGU C211 - Global Economics for Managers Updated Version 2023 2024 Questions and Correct Answers "Evolutionary" view on globalization - Correct AnswerA long-run historical evolution since the dawn of human history
"New" view on globalization - Correct AnswerA force sweeping through the world in recent times.
"Pendulum" view on globalization - Correct AnswerOne that swings from one extreme to another from time to time
- types of elasticity, their equations, purpose and outcomes - Correct Answer(1) Price
elasticity of demand - % chg in Q D / % chg in P (2) Income elasticity - % chg in Q D / % chg in income (3) Cross-price elasticity - % chg in Q D Good 1/% chg in Good #2 P
Absolute advantage - Correct AnswerThe economic advantage one nation enjoys that is superior to other nations
Benefits to a country receiving FDI - Correct AnswerCapital Inflow, Technology Spillover, Advanced Management Know-How, Job creation
Budget constraint - Correct AnswerThe consumption bundles that the consumer can afford.
Civil law - Correct AnswerLaw that uses comprehensive statutes and codes as a primary meCorrect Answerto form legal judgments.
Classical theories of international trade - Correct AnswerMercantilism, Absolute advantage, and Comparative advantage
Classical theory view - Correct AnswerStatic
Cognitive pillar - Correct AnswerThe internalized, taken-for-granted values and beliefs that guide behavior. (beliefs between right/wrong)
Command economy - Correct AnswerOne that is defined by a government taking all factors of production to be government-owned or state-owned, and all supply, demand, and pricing are planned by the government.
Common law - Correct AnswerLaw shaped by precedents and traditions from previous judicial decisions.
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Comparative advantage - Correct AnswerThe advantage one economic activity nation enjoys in comparison with other nations (relative, not absolute)
Consumer surplus - Correct AnswerThe amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it
Costs to a country receiving FDI - Correct AnswerLoss of Sovereignty, Adverse effects on competition, Capital outflow.
Cross-price elasticity - Correct AnswerA measure of how much the quantity demanded of one good responds to a change in the price of another good. Computed as the percentage change in quantity demanded of the first good divided by the percentage change in price of the second good. Substitutes=positive cross-price elasticity; complements=negative cross-price elasticity.
Currency hedging - Correct AnswerA way to protect traders and investors from being exposed to the fluctuations of the spot rate
Dead weight loss. - Correct AnswerThe fall in total surplus that results from a market distortion, such as a tax (new equilibrium price that is settled for the transaction will be higher and therefore some burden of this will be passed on to the consumer)
Demand curve for a monopolistic market - Correct AnswerDownward-sloping
Demand curve for a perfectly competitive firm - Correct AnswerHorizontal line
Democracy - Correct AnswerCitizens elect representatives to govern the country on their behalf.
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 - Correct AnswerMonopoly and Oligopoly have one to few firms, with limited products (cable TV), entry is difficult, and advertising is a natural feature. Monopolistic competition/perfect competition have many firms, mono comp has differentiated products (novels/movies) and perfect comp has identical products, entry is easy, and spend very little on advertising.
Discount rate - Correct AnswerThe interest rate banks pay when borrowing from the Federal Reserve.
Elastic - Correct AnswerQuantity moves proportionately more than the price (Price increase results in drastically lower demand).
Equity - Correct Answerindicative of relatively larger, harder-to-reverse commitments.Determines firms MNE status.
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