WGU D270 FINAL DAVIS EXAM QUESTIONS WELL ANSWERED LATEST UPDATE 2026

WGU D270 FINAL DAVIS EXAM QUESTIONS WELL ANSWERED LATEST UPDATE 2026 Economic freedom leads to - Answers Higher standard of living Why study the economic environment? - Answers Economic systems shape a market Better investment choices Operating decisions Policy decisions Better returns / less risk Developed Economies - Answers Efficient capital movement Stable institutions Infrastructure International trade and investments Technology Higher economic freedom Higher political freedom Rule of law Developing Economies - Answers Uneven Corruption Lower incomes Resistance to foreign ownership Lower literacy levels, poverty Lower economic freedom Lower political freedom Rule of man Emerging Economies - Answers Accelerating growth Modernizing Market liberalization Exports FDI Middle class, expanding consumption Pro business Higher economic freedom Higher/unchanged political freedom Moving towards rule of law Lower cost resources Productive labor G20 Countries - Answers Premier international forum for global economic cooperation 86% of world economy 78% of global trade 66% of world's population More than half of world's poor Some emerging countries Commonalities of Big Emerging Markets (BEMs) - Answers Territory Population Natural Resources, Increased consumption Liberalization - FDI Infrastructure needs Aspirations of technological leadership Political influence Emerging Economies at a glance - Answers Almost 6 billion people Account for 50% of global GDP Account for 50% of global exports Contributed to huge reduction in global poverty Contributed 80% of global growth since 2008 financial crisis (helping save jobs in advanced countries) China is now 1st or 2nd largest trading partner for 78 countries Big challenges for IB - Answers Communication, power generating, transportation infrastructure Distribution channels Financial markets Volatility Problems finding/working with suitable business partners Gov't involvement & control Corruption Economic Freedom - Answers The degree of economic freedom an individual has to use his or her initiative, effort, competencies to pursue their ambitions Absolute right of property ownership Fully realized freedoms of movement for labor capital and goods Economic Freedom in Business - Answers Liberty managers have to decide endless aspects of everyday business operations WITHOUT gov't coercion or constraint on the production, distribution, or consumption of goods and services Dimensions of Economic Freedom Index - Answers Rule of Law Limited Government Regulatory Efficiency Open Markets Rule of Law - Answers Property rights, freedom from corruption, effective judicial system Limited Gov't - Answers Fiscal health, gov't spending, limited taxation Regulatory Efficiency - Answers Labor, business, and monetary freedom Open Markets - Answers Trade, investment and financial freedom, freedom of movement of labor and goods Types of Economic Systems - Answers Command Market Mixed Command Economy - Answers An economic system in which the government controls a country's economy, centrally planned Low economic freedom Market Economy - Answers Individuals rather than gov't make majority of economic decisions High economic freedom Mixed Economy - Answers Falls somewhere in between Market and Command economy State Capitalism - Answers Political officials shape how assets are valued and when and where they're used State owns "national champion" businesses Forces financial system to provide low-cost capital Trade relations (promotes exports, limits imports) Reduces political freedom to expand economic prosperity Key Economic Measures - Answers GNI, GDP, GNP Rate of economic growth Population size Purchasing Power Parity (PPP) Sustainability and Happynomics Gross National Income (GNI) - Answers Market value of all goods and services produced by domestic economy plus income received from other nations minus same type of payments made to other nations Example of GNI - Answers Ford production value in USA and Mexico would count toward USA... Toyota production value in USA would not count... Countries with ____ GNI are most desirable in terms of market potential - Answers large populations and high per capita Gross Domestic Product (GDP) - Answers Market value of all production that takes place within a nation's borders, without regard to whether the production is done by domestic or foreign factors of production Example of GDP - Answers Both a Ford and Toyota manufactured in the USA counts... A Ford produced in Mexico would not count... Purchasing Power Parity (PPP) - Answers The amount of money needed in one country to purchase the same goods and services in another country Highest price for a Big Mac - Answers Switzerland Lowest price for a Big Mac - Answers Russia Net National Product (NNP) - Answers Depreciating the country's assets commensurate with their wear and tear in generating growth Genuine Progress Indicator (GPI) - Answers Takes into consideration pollution, crime, family troubles, free time Human Development Index (HDI) - Answers Longevity, standard of living and knowledge Global Competitiveness Index (GCI) - Answers Measures national competitiveness - Defined as the set of institutions, policies, and factors that determine the level of productivity Where-To-Be-Born Index (WTBBI) - Answers Measures the opportunity for a healthy, safe, and prosperous life Protectionism - Answers Gov't restrictions and incentives designed to help domestic businesses compete with foreign businesses Impede flow of imports or encourage flow of exports Reasons for US protection of catfish industry - Answers US Jobs (farmers) Tariff Revenue Local producer competitiveness Reasons against US protection of catfish industry - Answers Could spark larger trade war