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WGU Global-Economics-for-Managers Exam Syllabus Topics:

Section	Objectives
Topic 1: Microeconomics for Managers	- Supply and demand analysis - Market structures and competition - Elasticity and pricing decisions
Topic 2: Global Economics	- Exchange rates and currency systems - International trade and comparative advantage - Global economic institutions and trade policy
Topic 3: Macroeconomic Environment	- Fiscal and monetary policy - GDP, inflation, and unemployment
Topic 4: Managerial Economic Decision-Making	- Risk and uncertainty in global markets - Cost-benefit analysis in business contexts
Topic 5: Foundations of Economics	- Market systems and economic models - Scarcity, opportunity cost, and economic reasoning

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q132-Q137):

NEW QUESTION # 132
How does the Federal Reserve lower the federal funds rate?

A. By increasing taxes
B. By purchasing government bonds
C. By raising reserve requirements
D. By selling government bonds

Answer: B

Explanation:
InGlobal Economics for Managers, the Federal Reserve lowers thefederal funds ratebypurchasing government bonds, making option C correct.
Bond purchases increase bank reserves, easing liquidity conditions in the interbank market. With more reserves available, banks lend to each other at lower interest rates, reducing the federal funds rate.
Options A and B raise interest rates, while option D is fiscal policy.
Therefore, option C is correct.

NEW QUESTION # 133
What are represented by informal institutions?

A. Ethics
B. Regulations
C. Written laws
D. Rules

Answer: A

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 # 134
What are features shared by monopolies and perfect competition? (Choose TWO.)

A. Price is greater than marginal cost.
B. In the long run, new firms can easily enter the market.
C. Maximum profit occurs when marginal revenue equals marginal cost.
D. Firms earn economic profits in the short run.
E. In the long run, it is nearly impossible for new firms to enter.
F. The structure does not produce the welfare-maximizing level of output.

Answer: C,D

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 # 135
In a monopoly, which statements are likely true? (Choose TWO.)

A. Firms are price takers
B. One seller offers a unique good with no close substitutes
C. Marginal revenue equals price
D. Entry is free in the long run
E. There are barriers to entry into the market

Answer: B,E

Explanation:
InGlobal Economics for Managers, monopolies are characterized bya single seller offering a unique product andstrong barriers to entry, making options A and B correct.
Monopolists face no close substitutes and can influence market prices. Barriers to entry-such as legal protections, resource ownership, or economies of scale-prevent competitors from entering the market.
Options C and D apply to perfect competition. Option E contradicts the definition of monopoly.
Thus, options A and B correctly describe monopoly characteristics.

NEW QUESTION # 136
In which situation is the dodger strategy appropriate for responding to multinational enterprises (MNEs)?

A. There is high industry pressure to globalize, and competitive assets are customized to home markets.
B. There is low industry pressure to globalize, and competitive assets are transferable abroad.
C. There is low industry pressure to globalize, and competitive assets are customized to home markets.
D. There is high industry pressure to globalize, and competitive assets are transferable abroad.

Answer: C

Explanation:
InGlobal Economics for Managers, thedodger strategyis appropriate whenindustry pressure to globalize is low and a firm's competitive assets are customized to its home market, making option D correct.
Under this strategy, firms avoid direct confrontation with multinational enterprises by focusing on niche markets, specialized products, or protected domestic segments. Since globalization pressure is weak, firms are not forced to expand internationally, and their localized assets give them an advantage at home.
Dodgers may also cooperate selectively with MNEs or operate in areas where global competition is limited.
This strategy minimizes risk and preserves firm-specific advantages without costly global expansion.
Options A and B align with extender strategies. Option C aligns with contender strategies.
Thus, option D correctly identifies when the dodger strategy is appropriate.

NEW QUESTION # 137
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