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Our Global-Economics-for-Managers study questions in every year are summarized based on the test purpose, every answer is a template, there are subjective and objective Global-Economics-for-Managers exams of two parts, we have in the corresponding modules for different topic of deliberate practice. To this end, our Global-Economics-for-Managers training materials in the qualification exam summarize some problem- solving skills, and induce some generic templates. The user can scout for answer and scout for score based on the answer templates we provide, so the universal template can save a lot of precious time for the user to study and pass the Global-Economics-for-Managers Exam.
| Section | Weight | Objectives |
|---|---|---|
| Foreign Direct Investment and Global Strategy | 20% | - Global Business Strategy
|
| Foundations of Global Economics | 20% | - Economic Systems and Institutions
|
| Macroeconomics for Managers | 10% | - Economic Indicators and Policies
|
| International Trade Theory and Policy | 25% | - Trade Policies and Barriers
|
| Global Finance and Monetary Systems | 25% | - Foreign Exchange Markets
|
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NEW QUESTION # 72
What are common types of barriers to entry that can cause a monopoly? (Choose TWO.)
Answer: B,F
Explanation:
InGlobal Economics for Managers, monopolies arise whenbarriers to entryprevent potential competitors from entering a market. Two common barriers areeconomies of scaleandgovernment-granted exclusive rights, making options B and E correct.
Economies of scaleoccur when average costs decline as output increases. In industries with very high fixed costs, a single large firm can produce at a lower cost than multiple smaller firms. This discourages entry because new firms cannot compete efficiently at small scales, leading to monopoly outcomes.
Government regulations granting exclusive production rights-such as patents, licenses, or exclusive franchises-also create monopolies by legally preventing competition. These barriers are intentional and often justified to encourage innovation or ensure service provision.
Option A does not restrict entry. Option C may limit foreign competition but does not necessarily create a monopoly. Option D does not prevent entry. Option F may increase market concentration but is not a structural entry barrier itself.
Thus, options B and E are correct.
NEW QUESTION # 73
What is true about tariffs?
Answer: B
Explanation:
InGlobal Economics for Managers, tariffs are recognized as a policy tool thatallows governments to raise revenue, making option C correct.
Tariffs generate revenue by taxing imported goods. While domestic producers may benefit and governments gain revenue, consumers lose due to higher prices and reduced choices. Tariffs also create deadweight loss, reducing overall economic efficiency.
Options A, B, and D contradict standard trade theory.
Therefore, option C is correct.
NEW QUESTION # 74
What are represented by informal institutions?
Answer: D
Explanation:
Informal institutions are unwritten social constraints that shape behavior, including norms, customs, values, traditions, and ethics. Option B is correct because ethics represents an informal guide to behavior rather than a formally codified legal requirement. Informal institutions reduce uncertainty by helping people understand what is socially acceptable, trustworthy, or legitimate in a particular society. They matter greatly in global business because managers may comply with formal laws but still fail if they ignore local customs or ethical expectations. Rules and regulations are usually formal when written and enforced by legal authorities. Written laws are clearly formal institutions. Informal institutions are enforced mainly through social approval, reputation, relationships, and cultural expectations rather than courts or government penalties.
NEW QUESTION # 75
What is one characteristic of a market surplus?
Answer: D
Explanation:
InGlobal Economics for Managers, amarket surplusoccurs whenquantity supplied exceeds quantity demanded, making option B correct.
Surpluses typically arise when prices are set above the equilibrium level. At higher prices, producers supply more while consumers demand less, creating excess supply. Market forces then place downward pressure on prices until equilibrium is restored.
Options A and C describe shortages. Option D may be true in some cases but is not the defining characteristic.
Thus, option B correctly defines a market surplus.
NEW QUESTION # 76
Which pillar of formal institutions represents the coercive power of governments?
Answer: C
Explanation:
InGlobal Economics for Managers, theregulatory pillarof formal institutions represents thecoercive power of governments, making option C correct. Regulatory institutions consist of laws, rules, regulations, and enforcement mechanisms that shape economic behavior through rewards and punishments.
The regulatory pillar relies on the authority of the state to enforce compliance. Governments impose sanctions such as fines, imprisonment, or license revocation to ensure adherence to laws. For firms, this pillar defines what is legally permissible in areas such as labor practices, taxation, environmental standards, and competition policy.
The other institutional pillars-normative and cognitive-do not rely on coercion. Normative institutions are based on social norms and values, while cognitive institutions reflect shared beliefs and taken-for-granted assumptions.
Understanding the regulatory pillar is essential for managers because violations can result in severe legal and financial consequences. Thus, option C correctly identifies the pillar associated with government coercive power.
NEW QUESTION # 77
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