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

Section	Weight	Objectives
Global Finance and Monetary Systems	25%	- Balance of Payments and International Monetary System 1. Current account, capital account, official reserves 2. Fixed vs floating exchange rates, IMF, World Bank - Foreign Exchange Markets 1. Hedging and risk management 2. Exchange rate determination, currency regimes
Foreign Direct Investment and Global Strategy	20%	- Foreign Direct Investment (FDI) 1. Location advantages and entry modes 2. Theories of FDI, costs and benefits - Global Business Strategy 1. Porter's Diamond model 2. Strategic positions: Defender, Extender, Contender, Dodger
Foundations of Global Economics	20%	- Economic Systems and Institutions 1. Market, command, and mixed economies 2. Political, legal, and cultural frameworks - Views on Globalization 1. Drivers and consequences of globalization 2. New view, Evolutionary view, Pendulum view
Macroeconomics for Managers	10%	- Economic Indicators and Policies 1. GDP, inflation, unemployment, business cycles 2. Fiscal and monetary policy impacts
International Trade Theory and Policy	25%	- Classical and Modern Trade Theories 1. Heckscher-Ohlin, Product life-cycle, Strategic trade theory 2. Absolute advantage, Comparative advantage - Trade Policies and Barriers 1. Tariffs, quotas, subsidies, embargoes 2. Economic integration: EU, USMCA, ASEAN

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q68-Q73):

NEW QUESTION # 68
Which transaction is included in the consumption component of GDP?

A. A government builds a highway
B. A firm purchases new machinery
C. A person pays for a haircut
D. A company exports automobiles

Answer: C

Explanation:
InGlobal Economics for Managers, theconsumption component of GDPincludeshousehold spending on goods and services, making option C correct.
When a person pays for a haircut, it represents a direct purchase of a service by a household. Consumption is the largest component of GDP in most economies and includes spending on nondurable goods, durable goods, and services.
Option A is classified as investment. Option B is government spending. Option D is an export, counted in net exports.
Thus, option C correctly identifies a consumption transaction.

NEW QUESTION # 69
When the Federal Reserve decreases the money supply, what is the result?

A. The quantity of goods and services demanded for any given price decreases.
B. The efficiency of market corrections is reduced.
C. The quantity of goods and services demanded for one specific price increases.
D. The aggregate demand for imports increases.

Answer: A

Explanation:
When the Federal Reserve decreases the money supply, aggregate demand decreases because borrowing becomes more expensive and less credit is available. Option B is correct because the quantity of goods and services demanded at any given price level falls. A lower money supply tends to raise interest rates, which discourages consumer borrowing, business investment, and interest-sensitive purchases such as homes, vehicles, and capital equipment. This shifts the aggregate demand curve left. Option A is not the standard macroeconomic result. Option C is too narrow and incorrectly states that demand increases. Option D is also incorrect because contractionary monetary policy does not directly increase aggregate demand for imports.
For managers, tighter monetary policy can reduce sales forecasts, investment plans, and expansion opportunities.

NEW QUESTION # 70
When an import tariff is placed on footwear, which quantity increases?

A. Producer surplus for footwear
B. Consumer surplus for footwear
C. The quantity of footwear imported
D. Domestic demand for footwear

Answer: A

Explanation:
InGlobal Economics for Managers, animport tariffraises the domestic price of the imported good, making producer surplus for domestic producers increase, which makes option B correct.
When a tariff is imposed on imported footwear, foreign suppliers face higher costs, reducing imports.
Domestic producers benefit from reduced competition and higher market prices, allowing them to increase output and earn higher surplus.
Option A is incorrect because imports decrease. Option C is incorrect because higher prices reduce domestic demand. Option D is incorrect because consumer surplus falls due to higher prices and fewer choices.
Tariffs redistribute surplus from consumers to producers and the government, while also creating deadweight loss. Thus, option B is correct.

NEW QUESTION # 71
What is a feature of a democracy?

A. It can and often does lead to nationalization, or expropriation, of foreign assets.
B. It gives citizens the right to elect representatives to govern on their behalf.
C. It delegates absolute political control over the population to one person or party.
D. It often results in higher risk associated with political changes that may negatively impact domestic and foreign firms.

Answer: B

Explanation:
A democracy gives citizens the right to elect representatives who govern on their behalf. Option D is correct because political participation, representative government, accountability, and civil liberties are core features of democratic systems. Democracies generally have institutional checks and balances, rule of law, and mechanisms for peaceful leadership change. These features can reduce arbitrary government action and improve transparency for businesses. Option B describes totalitarianism, where one person or party holds absolute political control. Option C describes a political risk that may occur in some countries but is not a defining feature of democracy. Option A is also incorrect because democracies usually reduce extreme political uncertainty compared with authoritarian systems, although policy changes can still affect firms. The defining feature is citizen representation through elections.

NEW QUESTION # 72
What are characteristics of monopolistic competition? (Choose THREE.)

A. Free entry and exit
B. Homogeneous products
C. Many sellers
D. One seller
E. Product differentiation

Answer: A,C,E

Explanation:
InGlobal Economics for Managers,monopolistic competitionis characterized bymany sellers,product differentiation, andfree entry and exit, making options A, B, and C correct.
Firms sell products that are similar but not identical, allowing them some degree of pricing power. Examples include restaurants, clothing brands, and personal services. Because entry is relatively easy, economic profits tend to be eliminated in the long run.
Options D and E describe monopoly or perfect competition, not monopolistic competition.
Thus, A, B, and C correctly describe monopolistic competition.

NEW QUESTION # 73
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