WGU C211 GLOBAL ECONOMICS EXAM
CERTIFICATION EVALUATION TEST 2026 FULL
QUESTIONS AND CORRECT ANSWERS
ALREADY PASSED GRADED A+
◉ Cognitive pillar. Answer: The internalized, taken-for-granted
values and beliefs that guide behavior. (beliefs between
right/wrong)
◉ Formal institution. Answer: One that include laws, regulations and
rules
◉ Informal institution. Answer: One that includes norms, cultures
and ethics
◉ What core propositions lie at the root of the institution based
view on global business?. Answer: (1) managers and firms rationally
pursue their interests and make choices within institutional
constraints (bounded rationality)
(2) in situations where formal constraints are unclear or fail,
informal constraints play a larger role in reducing uncertainty and
providing constancy to managers and firms (personal relationships
and connections)
,◉ The institution based view global business is grounded upon.
Answer: The dynamic interaction between institutions and firms,
and considers firm behaviors as the outcome of such an interaction.
◉ How is global business affected by democracy?. Answer: An
individual's right to freedom of expression and organization. For
example, starting up a firm is an act of economic expression
◉ How is global business affected by totalitarianism?. Answer:
These countries often experience wars, riots, protests, chaos, and
breakdowns, which result in higher political risk.
◉ Democracy. Answer: Citizens elect representatives to govern the
country on their behalf.
◉ Totalitarianism. Answer: One person or party exercises absolute
political control over the population.
◉ Civil law. Answer: Law that uses comprehensive statutes and
codes as a primary means to form legal judgments.
◉ Common law. Answer: Law shaped by precedents and traditions
from previous judicial decisions.
, ◉ Theocratic law. Answer: A legal system based on religious
teachings.
◉ How do civil, common and theocratic laws compare?. Answer:
Relative to civil law, common law has more flexibility because judges
have to resolve specific disputes based on their interpretation of the
law. Civil law has less flexibility because judges only have the power
to apply the law.
◉ Property right. Answer: The legal rights to use an economic
resource and to derive income and benefits from it. Can be used as
collateral for starting a firm; not as common in developing countries,
therefore hindering economic growth.
◉ Intellectual property right. Answer: Rights associated with the
ownership. They primarily include rights associated with patents,
copyrights, and trademarks.
◉ Market economy. Answer: One that is characterized by the
"invisible hand" of market forces-all factors of production should be
privately owned.
◉ Command economy. Answer: One 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.
CERTIFICATION EVALUATION TEST 2026 FULL
QUESTIONS AND CORRECT ANSWERS
ALREADY PASSED GRADED A+
◉ Cognitive pillar. Answer: The internalized, taken-for-granted
values and beliefs that guide behavior. (beliefs between
right/wrong)
◉ Formal institution. Answer: One that include laws, regulations and
rules
◉ Informal institution. Answer: One that includes norms, cultures
and ethics
◉ What core propositions lie at the root of the institution based
view on global business?. Answer: (1) managers and firms rationally
pursue their interests and make choices within institutional
constraints (bounded rationality)
(2) in situations where formal constraints are unclear or fail,
informal constraints play a larger role in reducing uncertainty and
providing constancy to managers and firms (personal relationships
and connections)
,◉ The institution based view global business is grounded upon.
Answer: The dynamic interaction between institutions and firms,
and considers firm behaviors as the outcome of such an interaction.
◉ How is global business affected by democracy?. Answer: An
individual's right to freedom of expression and organization. For
example, starting up a firm is an act of economic expression
◉ How is global business affected by totalitarianism?. Answer:
These countries often experience wars, riots, protests, chaos, and
breakdowns, which result in higher political risk.
◉ Democracy. Answer: Citizens elect representatives to govern the
country on their behalf.
◉ Totalitarianism. Answer: One person or party exercises absolute
political control over the population.
◉ Civil law. Answer: Law that uses comprehensive statutes and
codes as a primary means to form legal judgments.
◉ Common law. Answer: Law shaped by precedents and traditions
from previous judicial decisions.
, ◉ Theocratic law. Answer: A legal system based on religious
teachings.
◉ How do civil, common and theocratic laws compare?. Answer:
Relative to civil law, common law has more flexibility because judges
have to resolve specific disputes based on their interpretation of the
law. Civil law has less flexibility because judges only have the power
to apply the law.
◉ Property right. Answer: The legal rights to use an economic
resource and to derive income and benefits from it. Can be used as
collateral for starting a firm; not as common in developing countries,
therefore hindering economic growth.
◉ Intellectual property right. Answer: Rights associated with the
ownership. They primarily include rights associated with patents,
copyrights, and trademarks.
◉ Market economy. Answer: One that is characterized by the
"invisible hand" of market forces-all factors of production should be
privately owned.
◉ Command economy. Answer: One 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.
