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

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

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q90-Q95):

NEW QUESTION # 90
Which statement about Federal Reserve lending to banks is true?

A. Fed lending to banks follows an overall uptrend.
B. Banks set consumer interest rates at the discount rate.
C. The discount rate is changed annually.
D. Banks pay the discount rate when borrowing funds from the Fed.

Answer: D

Explanation:
InGlobal Economics for Managers, banks that borrow directly from the Federal Reserve through the discount windowpay the discount rate, making option D correct. The discount rate is the interest rate the Fed charges banks for short-term loans.
Option A is incorrect because Fed lending fluctuates based on economic conditions. Option B is incorrect because the discount rate can be changed at any time. Option C is incorrect because consumer interest rates are market-determined, not set at the discount rate.
Thus, option D accurately describes Fed lending.

NEW QUESTION # 91
In a monopoly, which statements are likely true? (Choose TWO.)

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

Answer: B,D

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 # 92
What measures how the quantity demanded of one good responds to a change in the price of another good?

A. Quantity elasticity of demand
B. Price elasticity of demand
C. Cross-price elasticity of demand
D. Equilibrium elasticity of demand

Answer: C

Explanation:
Cross-price elasticity of demand measures how the quantity demanded of one good changes in response to a price change in another good. Option A is correct because this concept identifies whether goods are substitutes or complements. If cross-price elasticity is positive, the goods are substitutes; when the price of one rises, demand for the other increases. For example, if coffee becomes more expensive, demand for tea may rise. If cross-price elasticity is negative, the goods are complements; when the price of one rises, demand for the other falls. For example, if printers become more expensive, demand for printer cartridges may decline. Price elasticity of demand measures responsiveness to the good's own price, not another good's price.
The other options are not standard terms.

NEW QUESTION # 93
Which effect does increased government spending have on aggregate demand if the multiplier effect is greater than the crowding-out effect?

A. Aggregate demand increases by more than the increase in government spending.
B. Aggregate demand decreases by less than the increase in government spending.
C. Aggregate demand increases by less than the increase in government spending.
D. Aggregate demand decreases by more than the increase in government spending.

Answer: A

Explanation:
In Global Economics for Managers , when the multiplier effect exceeds the crowding-out effect , increased government spending causes aggregate demand (AD) to rise by more than the initial increase in spending
, making option A correct.
The multiplier effect occurs because government spending generates income, which leads to further consumption. Crowding out occurs when government borrowing raises interest rates and reduces private investment. If the multiplier is stronger, the net effect is an amplified increase in AD.
Thus, option A is correct.

NEW QUESTION # 94
What is a characteristic of a market economy?

A. Factors of production are government-owned or state-owned.
B. It found a near ideal in China and the former Soviet Union during the heydays of communism.
C. It is defined by a government taking the authoritative role in the economy.
D. The government takes a hands-off approach known as laissez-faire.

Answer: D

Explanation:
A market economy is associated with limited government intervention and reliance on private decision making, often described as a laissez-faire approach. Option B is correct because laissez-faire means the government largely allows market forces to guide production, pricing, investment, and consumption. In a pure market system, private individuals and firms own resources and respond to price signals. Option A is incorrect because China under communism and the former Soviet Union are classic examples of command economies, not market economies. Option C is also a command-economy characteristic because it gives government the authoritative role. Option D is wrong for the same reason: state ownership of production factors belongs to command or socialist systems. Market economies emphasize private ownership and voluntary exchange.

NEW QUESTION # 95
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