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

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

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q120-Q125):

NEW QUESTION # 120
A country has experienced a decrease in inflation. What is the effect on the country's currency exchange rate?

Answer: C


NEW QUESTION # 121
Which methods does the Federal Reserve use to alter reserve quantities? Choose three answers.

Answer: A,B,E

Explanation:
The Federal Reserve alters bank reserve quantities through monetary policy tools such as changing the discount rate and conducting open market operations. Option A is correct because raising the discount rate makes borrowing from the Fed more expensive, which can reduce bank reserves and lending. Option B is correct because buying bonds injects reserves into the banking system; the Fed pays for bonds, increasing bank reserves. Option E is correct because selling bonds removes reserves from the banking system as banks and investors pay the Fed. Raising inflation is not a direct Fed operating tool. Selling stock shares is not how the Fed manages reserves. Raising income tax rates is fiscal policy controlled by government taxation authorities, not the Federal Reserve's reserve-management tool.


NEW QUESTION # 122
Which statement about the GDP deflator is true?

Answer: C


NEW QUESTION # 123
When there is an expectation of lower income in the future, what is the effect on the demand curve for a normal good?

Answer: D

Explanation:
InGlobal Economics for Managers, demand for anormal goodincreases with income and decreases when income falls. If consumers expectlower future income, demand for normal goods decreases, causing the demand curve to shift left, making option A correct.
A leftward shift indicates that at every price, consumers are willing and able to purchase less of the good.
Expectations about future income influence present consumption decisions, especially for durable and discretionary goods.
Options C and D incorrectly describe movement along a demand curve rather than a shift. Option B would apply if income were expected to rise.
Therefore, option A is correct.


NEW QUESTION # 124
What is one benefit of small-scale entries into foreign markets?

Answer: C

Explanation:
Small-scale entry allows a firm to enter a foreign market cautiously, gain experience, and learn about local demand, institutions, competitors, distribution channels, and regulatory conditions without committing excessive capital. Option C is correct because learning by doing while limiting downside risk is the central advantage of small-scale entry. This approach is useful when market uncertainty is high or when managers lack reliable local knowledge. Option A is more consistent with large-scale entry, which signals major strategic commitment. Option B is incorrect because small-scale entry does not necessarily provide full control, especially if the firm uses partnerships, exporting, or limited investment. Option D is too optimistic because small-scale entry may limit speed and market-share growth. Its main benefit is controlled learning.


NEW QUESTION # 125
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