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| Section | Weight | Objectives |
|---|---|---|
| Foundations of Global Economics | 20% | - Economic Systems and Institutions
|
| Macroeconomics for Managers | 10% | - Economic Indicators and Policies
|
| Global Finance and Monetary Systems | 25% | - Balance of Payments and International Monetary System
|
| Foreign Direct Investment and Global Strategy | 20% | - Foreign Direct Investment (FDI)
|
| International Trade Theory and Policy | 25% | - Classical and Modern Trade Theories
|
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NEW QUESTION # 72
What is the profit maximization condition for a monopoly?
Answer: A
Explanation:
InGlobal Economics for Managers, the profit-maximizing condition forall firms, including monopolies, is whenmarginal revenue (MR) equals marginal cost (MC), making option B correct.
A monopolist faces a downward-sloping demand curve, meaning that to sell more output, it must lower price.
As a result, marginal revenue is less than price. The firm maximizes profit by producing the quantity where the additional revenue from the last unit sold equals the additional cost of producing it.
Option A applies toperfect competition, not monopoly. Option C focuses on revenue rather than profit.
Option D has no economic meaning for profit maximization.
Thus, option B is correct.
NEW QUESTION # 73
What is one example of something a copyright is used to protect?
Answer: C
Explanation:
InGlobal Economics for Managers,copyrightis identified as a form of intellectual property protection that applies tooriginal works of authorship, making option A-the content of a book-the correct answer.
Copyright protects the expression of ideas rather than the ideas themselves.
Copyright protection typically covers literary works, music, films, software code, artistic creations, and other original content fixed in a tangible medium. It grants the creator exclusive rights to reproduce, distribute, display, and perform the work for a specified period. This protection encourages creativity and innovation by allowing creators to earn economic returns from their work.
Option B refers totrademarks, which protect brand names, symbols, and slogans used to distinguish goods or services. Option C, the design of a logo, is also generally protected under trademark law. Option D describes a patent, which protects new inventions, processes, or designs with functional utility.
Global Economics for Managersemphasizes that strong intellectual property protection is critical for firms competing in knowledge-intensive industries. Copyright protection, in particular, plays a key role in publishing, entertainment, and software sectors.
Therefore, option A correctly identifies an example of what copyright is used to protect.
NEW QUESTION # 74
Which effect does increased government spending have on aggregate demand if the multiplier effect is greater than the crowding-out effect?
Answer: B
Explanation:
In Global Economics for Managers , when the multiplier effect exceeds the crowding-out effect , increased government spending causes aggregate demand (AD) to rise by more than the initial increase in spending
, making option A correct.
The multiplier effect occurs because government spending generates income, which leads to further consumption. Crowding out occurs when government borrowing raises interest rates and reduces private investment. If the multiplier is stronger, the net effect is an amplified increase in AD.
Thus, option A is correct.
NEW QUESTION # 75
What is true about tariffs?
Answer: A
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 # 76
One view of globalization claims that human civilization has always had some type of globalization.
Which view is it?
Answer: A
Explanation:
InGlobal Economics for Managers, thelong-run historical viewof globalization argues that globalization is not a recent phenomenon, but rather a process that has existed throughout human history. This view emphasizes that trade, migration, cultural exchange, and cross-border interactions have occurred for thousands of years, long before modern multinational enterprises or digital technologies emerged.
Under this perspective, early examples of globalization include ancient trade routes such as the Silk Road, maritime trade across the Mediterranean, and colonial-era exchanges of goods, capital, and labor. Although the scale, speed, and complexityof globalization have increased dramatically in recent decades, the underlying idea of cross-border integration is seen as historically continuous.
This view contrasts with more recent interpretations that define globalization as a post-World War II or late
20th-century phenomenon driven by multinational corporations, trade liberalization, and digital communication. The long-run historical view does not deny the importance of these modern forces but argues that they represent anintensification, not the origin, of globalization.
For managers, this perspective is important because it frames globalization as a persistent structural force rather than a temporary trend. Firms operating globally must recognize that international economic integration has deep roots and is likely to continue evolving rather than reversing permanently.
Therefore, option C correctly identifies the long-run historical view as the perspective that sees globalization as an enduring feature of human civilization.
NEW QUESTION # 77
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