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

SectionWeightObjectives
Macroeconomics for Managers10%- Economic Indicators and Policies
  • 1. Fiscal and monetary policy impacts
  • 2. GDP, inflation, unemployment, business cycles
Global Finance and Monetary Systems25%- Balance of Payments and International Monetary System
  • 1. Fixed vs floating exchange rates, IMF, World Bank
  • 2. Current account, capital account, official reserves
- Foreign Exchange Markets
  • 1. Exchange rate determination, currency regimes
  • 2. Hedging and risk management
Foundations of Global Economics20%- 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
International Trade Theory and Policy25%- Classical and Modern Trade Theories
  • 1. Absolute advantage, Comparative advantage
  • 2. Heckscher-Ohlin, Product life-cycle, Strategic trade theory
- Trade Policies and Barriers
  • 1. Tariffs, quotas, subsidies, embargoes
  • 2. Economic integration: EU, USMCA, ASEAN
Foreign Direct Investment and Global Strategy20%- Foreign Direct Investment (FDI)
  • 1. Theories of FDI, costs and benefits
  • 2. Location advantages and entry modes
- Global Business Strategy
  • 1. Strategic positions: Defender, Extender, Contender, Dodger
  • 2. Porter's Diamond model

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q10-Q15):

NEW QUESTION # 10
Which factors increase a country's currency exchange value? Choose two answers.

Answer: A,C

Explanation:
A country's currency exchange value tends to rise when economic conditions increase demand for that currency. Option A is correct because higher productivity improves competitiveness, lowers relative production costs, and can increase foreign demand for the country's goods and currency. Option B is also correct because higher interest rates can attract foreign capital seeking better returns, increasing demand for the domestic currency. A fall in productivity weakens competitiveness and can reduce currency value. A rise in inflation usually depreciates a currency because purchasing power falls. Political unrest also weakens investor confidence and can trigger capital flight. A fall in population does not automatically increase exchange value and may weaken long-term growth expectations. Therefore, productivity gains and higher interest rates are the best answers.


NEW QUESTION # 11
What is an example of goods that tend to have negative cross-price elasticities?

Answer: C

Explanation:
InGlobal Economics for Managers,complementary goodshavenegative cross-price elasticity, making option C correct.
When the price of one good rises, demand for its complement falls. Examples include cars and gasoline or printers and ink.
Substitutes have positive cross-price elasticity. Inferior and luxury goods relate to income elasticity, not cross- price elasticity.
Thus, option C is correct.


NEW QUESTION # 12
Barriers to entry help to create monopolies. What is a common type of barrier?

Answer: A

Explanation:
Economies of scale are a common barrier to entry that can help create monopoly power. Option D is correct because when average costs decline as output increases, a large established firm may produce at a lower per- unit cost than potential entrants. New firms entering at small scale may be unable to match the incumbent's cost advantage, making entry unattractive or impossible. This is especially important in industries with high fixed costs, such as utilities, railways, telecommunications infrastructure, and large-scale manufacturing.
Option A may reduce competition, but it is not the standard structural barrier described here. Elastic demand curves do not block entry. Progressive tax structures are tax systems, not typical monopoly barriers.
Economies of scale are one of the classic reasons monopolies can persist.


NEW QUESTION # 13
Costs that do not vary with output quantity divided by the quantity of output is best described by which term?

Answer: A

Explanation:
Average fixed cost is calculated by dividing fixed costs by the quantity of output. Fixed costs are costs that do not change with production volume in the short run, such as rent, certain license fees, salaried administrative expenses, or fixed internet service costs. Option D is correct because the question specifically says "costs that do not vary with output quantity," which identifies fixed costs, and then says those costs are divided by quantity. Total cost equals fixed cost plus variable cost. Marginal cost is the additional cost of producing one more unit. Average variable cost divides variable costs by output. Average fixed cost usually declines as output increases because the same fixed cost is spread across more units. This is why higher production can reduce per-unit fixed cost.


NEW QUESTION # 14
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 # 15
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