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

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

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q117-Q122):

NEW QUESTION # 117
Which quantity is calculated using the formula variable costs (VC) + fixed costs (FC)?

A. Explicit cost (EC)
B. Implicit cost (IC)
C. Average variable cost (AVC)
D. Total cost (TC)

Answer: D

Explanation:
InGlobal Economics for Managers,total cost (TC)is defined as the sum offixed costs (FC)andvariable costs (VC), making option C correct. The formula is:
TC = FC + VC
Fixed costs do not change with output in the short run, such as rent or license fees, while variable costs change with the level of production, such as labor or raw materials. Total cost captures the full economic cost of producing a given level of output.
Option A, implicit cost, refers to opportunity costs without direct monetary payment. Option B, explicit cost, includes direct monetary expenditures but does not represent the total cost formula. Option D, average variable cost, is calculated as VC divided by quantity produced.
Understanding total cost is essential for profit maximization and production decisions. Therefore, option C is correct.

NEW QUESTION # 118
What is opportunity cost?

A. The marginal benefit of an additional unit
B. The total cost of all inputs used in production
C. The lost potential from pursuing one activity at the expense of another, given the alternatives
D. The explicit monetary cost of an activity

Answer: C

Explanation:
InGlobal Economics for Managers,opportunity costis defined asthe lost potential from pursuing one activity at the expense of another, given the available alternatives, making option B correct. Opportunity cost reflects the value of the next best alternative that is foregone when a decision is made.
This concept is central to economic decision making because resources-such as time, capital, and labor-are scarce. Choosing one option necessarily means giving up another. Opportunity cost includes both monetary and non-monetary factors and applies to individuals, firms, and governments alike.
For firms, opportunity cost may involve using capital for one investment rather than another. For consumers, it may involve spending money on one good instead of saving it or purchasing a different good. Managers must account for opportunity costs to make efficient and rational decisions.
Option A refers only to explicit costs, which are incomplete. Options C and D describe different cost and benefit concepts.
Thus, option B correctly defines opportunity cost.

NEW QUESTION # 119
In an oligopoly with an initial agreement to maximize total profit, which statements might a firm motivated by self-interest likely make? (Choose THREE.)

A. "If my fellow firms fail to live up to the agreement and raise production, I am better off raising production myself."
B. "Regardless of what my fellow firms do, I am better off raising production beyond the agreed-to level."
C. "I am better off reducing output below the agreed level."
D. "If my fellow firms live up to the agreement, I am better off raising production."
E. "I should always cooperate, regardless of outcomes."

Answer: A,B,D

Explanation:
InGlobal Economics for Managers, oligopolies often face aprisoner's dilemma, making deviation from collusive agreements individually rational. Options A, B, and C correctly reflect this logic.
If others cooperate, cheating by increasing output raises individual profit. If others cheat, matching their behavior minimizes losses. Therefore, regardless of others' actions, raising output appears optimal.
Options D and E contradict self-interested incentives.
Thus, A, B, and C correctly capture oligopolistic behavior.

NEW QUESTION # 120
An import tariff is implemented on apples. What is the effect on domestic government revenue?

A. It becomes negative
B. It decreases
C. It remains unchanged
D. It increases

Answer: D

Explanation:
InGlobal Economics for Managers, animport tariffgeneratesgovernment revenue, making option C correct.
A tariff is a tax on imported goods. When apples are imported and subject to a tariff, the government collects revenue equal to the tariff rate multiplied by the quantity imported. Although the quantity of imports usually declines after a tariff is imposed, the government still earns revenue on remaining imports.
This revenue comes at the expense of consumers, who face higher prices, and contributes to deadweight loss.
However, from the government's perspective, tariff revenue increases.
Thus, option C is correct.

NEW QUESTION # 121
What does the Federal Reserve do to expand aggregate demand? (Choose TWO.)

A. Increase the foreign exchange rate
B. Reduce the quantity of reserves
C. Increase the money supply
D. Lower the interest rate
E. Raise mortgage rates
F. Decrease the money supply

Answer: C,D

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 # 122
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