WGU C211 PRE-ASSESSMENT QUESTioNS ANd CoRRECT
ANSWERS (VERiFiEd) | LATEST UPdATE 2026/2027 | GRAdEd
A+ | BRANd NEW | 100% GUARANTEEd PASS
Which view claims that the phenomenon of globalization was initially driven by the
desire of Western economies to exploit their power through multinational enterprise? -
ANSWER-The new-force view
Economic gains come from international trade because one country's exported goods,
services, or other items are unique, valuable, and difficult to duplicate to the importing
countries. Which view does this statement portray? - ANSWER-Resource-based view
What is the aggregation of importing and exporting that leads to the country-level trade
surplus or deficit? - ANSWER-Balance of trade
What is a cost of foreign direct investment? - ANSWER-Developing countries may be
exploited by multinational enterprises (MNE).
What may precious, rare, and hard-to-duplicate resources and capabilities lead to for a
firm? - ANSWER-Sustained comparative advantage
Which theory states that patterns of international trade change across new, maturing,
and standardized states? - ANSWER-Product life cycle theory
What is the financial environment in which exchange rates and payments for goods and
services are conducted? - ANSWER-International monetary system
What happens to a country's real exchange rate and nominal interest rate as the price
level increases, assuming all other factors are unchanged? - ANSWER-Exchange rates
depreciate; interest rates increase
, What is the easiest method nonfinancial companies use to handle currency
fluctuations? - ANSWER-Currency diversification
Which strategy minimizes the risk of unanticipated changes in future exchange rates? -
ANSWER-Currency swap
A company is looking for a location with an abundance of ground-breaking individuals,
firms, and universities. Which type of strategic goal is this company demonstrating? -
ANSWER-Innovation-seeking
How does the prisoner's dilemma help in understanding company behavior in an
oligopoly? - ANSWER-Company strategies must consider actions by rival firms.
What do economists use to represent a consumer's preferences? - ANSWER-
Indifference curves
What can be assumed that the consumer will buy if it is observed that the consumer's
budget constraint has shifted inward? - ANSWER-Fewer normal goods and more
inferior goods
What will happen to the market price and quantity in the short run if there is an increase
in market demand in a perfectly competitive market? - ANSWER-The equilibrium price
will increase, and the equilibrium quantity will increase.
What will happen to equilibrium quantity and price if both demand and supply increase?
- ANSWER-Quantity will decrease but price can either increase or decrease.
What happens to demand quantity for normal goods as percentage change in income
increases? - ANSWER-Demand increases
What do the positive or negative numbers of cross-price elasticity represent? -
ANSWER-Substitutes or complements
What is one way the Federal Reserve influences the reserve ratio? - ANSWER-By
altering reserve requirements
ANSWERS (VERiFiEd) | LATEST UPdATE 2026/2027 | GRAdEd
A+ | BRANd NEW | 100% GUARANTEEd PASS
Which view claims that the phenomenon of globalization was initially driven by the
desire of Western economies to exploit their power through multinational enterprise? -
ANSWER-The new-force view
Economic gains come from international trade because one country's exported goods,
services, or other items are unique, valuable, and difficult to duplicate to the importing
countries. Which view does this statement portray? - ANSWER-Resource-based view
What is the aggregation of importing and exporting that leads to the country-level trade
surplus or deficit? - ANSWER-Balance of trade
What is a cost of foreign direct investment? - ANSWER-Developing countries may be
exploited by multinational enterprises (MNE).
What may precious, rare, and hard-to-duplicate resources and capabilities lead to for a
firm? - ANSWER-Sustained comparative advantage
Which theory states that patterns of international trade change across new, maturing,
and standardized states? - ANSWER-Product life cycle theory
What is the financial environment in which exchange rates and payments for goods and
services are conducted? - ANSWER-International monetary system
What happens to a country's real exchange rate and nominal interest rate as the price
level increases, assuming all other factors are unchanged? - ANSWER-Exchange rates
depreciate; interest rates increase
, What is the easiest method nonfinancial companies use to handle currency
fluctuations? - ANSWER-Currency diversification
Which strategy minimizes the risk of unanticipated changes in future exchange rates? -
ANSWER-Currency swap
A company is looking for a location with an abundance of ground-breaking individuals,
firms, and universities. Which type of strategic goal is this company demonstrating? -
ANSWER-Innovation-seeking
How does the prisoner's dilemma help in understanding company behavior in an
oligopoly? - ANSWER-Company strategies must consider actions by rival firms.
What do economists use to represent a consumer's preferences? - ANSWER-
Indifference curves
What can be assumed that the consumer will buy if it is observed that the consumer's
budget constraint has shifted inward? - ANSWER-Fewer normal goods and more
inferior goods
What will happen to the market price and quantity in the short run if there is an increase
in market demand in a perfectly competitive market? - ANSWER-The equilibrium price
will increase, and the equilibrium quantity will increase.
What will happen to equilibrium quantity and price if both demand and supply increase?
- ANSWER-Quantity will decrease but price can either increase or decrease.
What happens to demand quantity for normal goods as percentage change in income
increases? - ANSWER-Demand increases
What do the positive or negative numbers of cross-price elasticity represent? -
ANSWER-Substitutes or complements
What is one way the Federal Reserve influences the reserve ratio? - ANSWER-By
altering reserve requirements
