(Top 2024/2025 EXAM REVIEW PAPER ) WGU; C200; Global Economics; Chapter 2. Exam Questions and answers, 100% Accurate. VERIFIED.

WGU; C200; Global Economics; Chapter 2. Exam Questions and answers, 100% Accurate. VERIFIED. Formal institutions include all of the following EXCEPT: a. Cultures b. Regulations c. Rules d. Laws - -Cultures What is a cognitive pillar? a. The manager's way of looking at employees b. The way people behave in an organization c. The way the organization views their culture d. The internalized values and beliefs that guide behavior - -The internalized values and beliefs that guide behavior The key role of institutions is to: a. reduce uncertainty. b. expand the range of acceptable actions. c. restrict actions of competitors. d. increase transaction costs. - -reduce uncertainty. Which of the following is NOT a proposition of the institution-based view of global business? a. Formal and informal institutions combine to govern firm behavior. b. In situations where formal constraints are unclear, informal constraints will play a larger role in reducing uncertainty. c. Managers and firms rationally pursue their interests and make choices within the formal and informal constraints. d. Informal institutions do not govern firm behavior. - -Informal institutions do not govern firm behavior. Which of the following is included in formal institutions? a. Cultures b. Ethics c. Legal systems d. Norms - -Legal systems Which of the following statement is NOT true about civil law? a. Civil law has statutes and codes to guide judges. b. In civil law countries, judges interpret the law largely based on previous judicial decisions. c. Civil law was derived from Roman law and strengthened by Napoleon's France. d. Civil law has less flexibility than common law because judges only have the power to apply the law. - -In civil law countries, judges interpret the law largely based on previous judicial decisions. Which of the following factors do NOT drive economic development in different countries? a. Political system b. Geography c. Institutions d. Culture - -Political system Which of the following statement is NOT true about market economy? a. The government takes a hands-off approach in market economy. b. The government only performs functions the private sector cannot perform c. All factors of production should be government owned and controlled. d. Market economy is characterized by the "invisible hand" of market forces. - -All factors of production should be government owned and controlled. Imagine you are running a small home-based business selling software you developed. You are tempted to not report all of your sales so that you don't have to pay the full amount of sales tax required by law, but you don't want to jeopardize yourself or your business so you pay the full amount. Within an institutional framework, your behavior is influenced by: a. your culture. b. both the normative and cognitive pillars. c. the regulatory pillar. d. your finances. - -the regulatory pillar. In what ways do institutions influence individual and firm behaviors? a. Institutions separate individuals and firms into categories by forcing them to choose between the regulatory, normative, and cognitive pillars. b. Institutions exert control by establishing a system of laws and consequences if the laws are broken. c. Institutions create chaos by promoting opportunism, defined as self-interest seeking with guile. d. Institutions reduce uncertainty by influencing the decision-making process of both individuals and firms by signaling what conduct is legitimate and acceptable and what is not. - -Institutions reduce uncertainty by influencing the decision-making process of both individuals and firms by signaling what conduct is legitimate and acceptable and what is not. Institutional framework only pertains to a firm's behav