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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Macroeconomics for Managers | 10% | - Economic Indicators and Policies
|
| Topic 2: Global Finance and Monetary Systems | 25% | - Foreign Exchange Markets
|
| Topic 3: Foundations of Global Economics | 20% | - Economic Systems and Institutions
|
| Topic 4: International Trade Theory and Policy | 25% | - Trade Policies and Barriers
|
| Topic 5: Foreign Direct Investment and Global Strategy | 20% | - Global Business Strategy
|
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NEW QUESTION # 57
What does the Federal Reserve do to expand aggregate demand? (Choose TWO.)
Answer: C,E
Explanation:
InGlobal Economics for Managers, the Federal Reserve expands aggregate demand byincreasing the money supplyandlowering interest rates, making options B and C correct.
Increasing the money supply provides banks with more reserves, encouraging lending. Lower interest rates stimulate borrowing by households and firms, increasing consumption and investment. Both channels raise aggregate demand.
The remaining options contract demand rather than expand it. Therefore, B and C are correct.
NEW QUESTION # 58
Which protection of intellectual property is used for the design of a logo?
Answer: A
Explanation:
InGlobal Economics for Managers, atrademarkis the form of intellectual property protection used forlogos, brand names, symbols, and slogans, making option C correct. Trademarks allow firms to distinguish their products and services from those of competitors and protect brand identity.
A logo serves as a visual identifier of a company or product, and trademark protection prevents other firms from using confusingly similar designs. This protection helps maintain consumer trust and brand value.
Patents protect inventions, copyrights protect original creative works, and trade secrets protect confidential business information.
Thus, option C correctly identifies trademark protection for logo design.
NEW QUESTION # 59
What is a tariff levied on imports that are selling below cost in order to unfairly drive domestic firms out of business?
Answer: B
Explanation:
An antidumping duty is a tariff imposed on imported goods that are sold at unfairly low prices, often below cost or below the price charged in the exporter's home market. Dumping can harm domestic producers because foreign firms may temporarily underprice goods to gain market share or drive competitors out of business. Governments use antidumping duties to offset this unfair pricing and restore competitive conditions.
Option C is correct because it directly identifies the trade remedy used against below-cost imports. Factor endowment refers to a country's available resources, not a tariff. Deadweight cost is the net welfare loss caused by tariffs or other distortions. Opportunity cost is the value of the next best alternative forgone when a choice is made.
NEW QUESTION # 60
Which scenario demonstrates a monopoly created by a resource?
Answer: B
Explanation:
InGlobal Economics for Managers, aresource-based monopolyarises when a single firm controls aunique, scarce resourcethat cannot be easily replicated or accessed by competitors. Option D correctly illustrates this situation. When only one mine in the world possesses a rare jewel, the firm owning that mine has exclusive control over the supply of that resource, creating monopoly power.
This type of monopoly differs from legal or technological monopolies. The monopoly exists not because of government protection or intellectual property rights, but because ofnatural scarcity. Competitors cannot enter the market without access to the same resource, and alternative sources may be unavailable or prohibitively costly. As a result, the monopolist can restrict output and charge prices above marginal cost.
Option A describes anatural monopolybased on cost structure rather than resource ownership. Options B and C describelegal monopoliescreated by copyright protection, not resource monopolies.
Thus, option D correctly demonstrates a monopoly created by control over a unique resource.
NEW QUESTION # 61
What are features shared by monopolies and perfect competition? (Choose TWO.)
Answer: E,F
Explanation:
InGlobal Economics for Managers, monopolies and perfectly competitive firms share two important features:
profit maximization at MR = MCand the ability toearn economic profits in the short run, making options E and F correct.
Option E applies universally: all firms maximize profit wheremarginal revenue equals marginal cost, regardless of market structure. This decision rule guides output choices in both monopoly and perfect competition.
Option F is also correct because firms in both structurescan earn economic profits in the short run. In perfect competition, short-run profits attract new entrants, while monopolies may sustain profits longer due to entry barriers.
Options A and B distinguish the two structures. Option C applies only to monopoly. Option D applies only to monopoly, not perfect competition.
Thus, options E and F correctly identify shared features.
NEW QUESTION # 62
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