C211 Global Economics FINAL EXAM || Most Recnt Exam
2025/2026 || Actual Complete Real Exam Questions And
Correct Answers (Verified Answers) Already Graded A+ |
Newest Exam | Just Released!!
How can firms increase their chance of success with FDI? -
ANSWER-1.
leveraging OLI advantages in a way that is valuable, unique,
and hard to imitate 2. assessing whether FDI is justified in light
of other options 3. understanding all political realities that
facilitate or constrain FDI
How do institutions reduce uncertainty? - ANSWER-by
signaling which conduct
is legit and which is not; constrain the range of
acceptable actions
What are two core propositions underpinning an institution
based view of global business? - ANSWER-Managers and firms
pursue their interests and make choices rationally; in situations
where formal constraints are unclear/fail, informal constraints
play a larger role in decreasing uncertainty and providing
constancy to firms and managers
,How are total cost and marginal cost related? - ANSWER-ATC
and MC increase as the output increases due to diminishing
marginal product curves; curves intersect at lowest ATC
What is condition when competitive firms under perfect
competition decide to
shut down production temporarily? - ANSWER-TR <
VC or P < AVC
What are similarities and differences between demand curve for
a firm under monopoly and one under perfect competition -
ANSWER-Monopoly has downward sloping demand curve v.
perfectly competitive market has horizontal demand curve
How does monopoly determine quantity to produce and
price? - ANSWER-
Intersection of MR and MC curve, then use demand curve to
find P that will
induce consumers to by
Q max
What are characteristics of monopolistic competition -
ANSWER-many firms,
product differentiation, free
entry/exit
How does prisoners dilemma apply to oligopoly - ANSWER-if
cooperate can achieve monopoly prices, however self-interests
often lead to cheating leading to less profits for all
,What are Fed Reserve's tools for monetary control? - ANSWER-
open market operations (purchase and sell of govt bonds),
decrease discount rate (increase borrowing), decrease reserve
requirements, or decrease interest rates on reserves
How do monetary policy and fiscal policy affect interest rates
and aggregate
demand? - ANSWER-Monetary policy (FED): increase IR,
decrease money
supply, decrease aggregate demand; decrease IR, increase
money supply,
increase aggregate demand; lower IR stimulates
investment spending
Fiscal policy (govt): increase govt spending, decrease
taxes, increase IR,
increase aggregate
demand
What is a transaction risk? - ANSWER-Potential for loss
associated with
fluctuation in foreign
exchange market
If a company seeks to limit foreign exchange rates in the
forward direction, what
is the most effective way to do this? - ANSWER-spot
transactions, strategic
, hedging, or money
diversification
GDP Exclusions - ANSWER-Financial transactions
(public/private transfer payments), stock market transactions,
second hand sales, nonmarket activities, underground
economy
Real GDP - ANSWER-Production of goods and services valued
at a constant price (removes price changes to show true
change in production); better gauge of economic wellbeing
Nominal GDP - ANSWER-Values goods and services at current
prices
GDP Deflator - ANSWER-Measure of price level
calculated as ration of
NGDP/RGDP
World price - ANSWER-Price of good that prevails in the world
market for that
good
Domestic price - ANSWER-Opportunity cost of the good
on the domestic
market
2025/2026 || Actual Complete Real Exam Questions And
Correct Answers (Verified Answers) Already Graded A+ |
Newest Exam | Just Released!!
How can firms increase their chance of success with FDI? -
ANSWER-1.
leveraging OLI advantages in a way that is valuable, unique,
and hard to imitate 2. assessing whether FDI is justified in light
of other options 3. understanding all political realities that
facilitate or constrain FDI
How do institutions reduce uncertainty? - ANSWER-by
signaling which conduct
is legit and which is not; constrain the range of
acceptable actions
What are two core propositions underpinning an institution
based view of global business? - ANSWER-Managers and firms
pursue their interests and make choices rationally; in situations
where formal constraints are unclear/fail, informal constraints
play a larger role in decreasing uncertainty and providing
constancy to firms and managers
,How are total cost and marginal cost related? - ANSWER-ATC
and MC increase as the output increases due to diminishing
marginal product curves; curves intersect at lowest ATC
What is condition when competitive firms under perfect
competition decide to
shut down production temporarily? - ANSWER-TR <
VC or P < AVC
What are similarities and differences between demand curve for
a firm under monopoly and one under perfect competition -
ANSWER-Monopoly has downward sloping demand curve v.
perfectly competitive market has horizontal demand curve
How does monopoly determine quantity to produce and
price? - ANSWER-
Intersection of MR and MC curve, then use demand curve to
find P that will
induce consumers to by
Q max
What are characteristics of monopolistic competition -
ANSWER-many firms,
product differentiation, free
entry/exit
How does prisoners dilemma apply to oligopoly - ANSWER-if
cooperate can achieve monopoly prices, however self-interests
often lead to cheating leading to less profits for all
,What are Fed Reserve's tools for monetary control? - ANSWER-
open market operations (purchase and sell of govt bonds),
decrease discount rate (increase borrowing), decrease reserve
requirements, or decrease interest rates on reserves
How do monetary policy and fiscal policy affect interest rates
and aggregate
demand? - ANSWER-Monetary policy (FED): increase IR,
decrease money
supply, decrease aggregate demand; decrease IR, increase
money supply,
increase aggregate demand; lower IR stimulates
investment spending
Fiscal policy (govt): increase govt spending, decrease
taxes, increase IR,
increase aggregate
demand
What is a transaction risk? - ANSWER-Potential for loss
associated with
fluctuation in foreign
exchange market
If a company seeks to limit foreign exchange rates in the
forward direction, what
is the most effective way to do this? - ANSWER-spot
transactions, strategic
, hedging, or money
diversification
GDP Exclusions - ANSWER-Financial transactions
(public/private transfer payments), stock market transactions,
second hand sales, nonmarket activities, underground
economy
Real GDP - ANSWER-Production of goods and services valued
at a constant price (removes price changes to show true
change in production); better gauge of economic wellbeing
Nominal GDP - ANSWER-Values goods and services at current
prices
GDP Deflator - ANSWER-Measure of price level
calculated as ration of
NGDP/RGDP
World price - ANSWER-Price of good that prevails in the world
market for that
good
Domestic price - ANSWER-Opportunity cost of the good
on the domestic
market
