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

1. Which entrant is able to erect significant barriers for other entrants?

A) First mover
B) Dodger
C) Contender
D) Late mover

2. What is one of the three primary strategies that nonfinancial companies use to cope with currency risks?

A) Using foreign dealers for their goods
B) Reducing currency liabilities
C) Keeping low inventories
D) Strategic hedging

3. What are examples of fixed costs? (Choose TWO.)

A) Sales commissions
B) Monthly internet cost in a women's apparel business
C) Cost of parts in computer manufacturing
D) A $1,000 state license fee to operate a shop
E) Cost of flour in bread production

4. What is one of the three primary types of foreign exchange transactions?

A) Spot transactions
B) Hedging transactions
C) Arbitrage transactions
D) Forward transactions

5. What are common types of barriers to entry that can cause a monopoly? (Choose TWO.)

A) Economies of scale in the production process
B) Elastic demand
C) A single firm owning a key resource
D) Free entry and exit
E) Perfect information

Solutions: