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

Section	Objectives
Competency 1: International Trade and Currency Exchange	- Impact of Interest Rates on Financial Flows and Exchange Rates - Currency Exchange Rate Determination - Introduction to International Trade Theories
Competency 2: Political and Economic Forces	- Property Rights and the Rule of Law - Market Economy vs. Command Economy
Competency 3: Economic Decision-Making by Firms and Customers	- Firm Behavior Under Different Market Structures (Perfect Competition, Monopoly, Oligopoly) - Consumer Behavior (Budget Constraint, Indifference Curves)
Key Topics Across All Competencies	- International Trade Policies (Tariffs, Quotas) - Supply and Demand Shifts - Global Business Strategies and Porter's Framework - Elastic vs. Inelastic Goods - Currency Appreciation and Depreciation - Foreign Direct Investment (FDI) Impacts

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q27-Q32):

NEW QUESTION # 27
A country has experienced a decrease in inflation. What is the effect on the country's currency exchange rate?

A. It becomes unstable
B. It increases
C. It has no effect
D. It depreciates

Answer: B

NEW QUESTION # 28
In which situation is the dodger strategy appropriate for responding to multinational enterprises (MNEs)?

A. There is high industry pressure to globalize, and competitive assets are customized to home markets.
B. There is low industry pressure to globalize, and competitive assets are customized to home markets.
C. There is high industry pressure to globalize, and competitive assets are transferable abroad.
D. There is low industry pressure to globalize, and competitive assets are transferable abroad.

Answer: B

Explanation:
InGlobal Economics for Managers, thedodger strategyis appropriate whenindustry pressure to globalize is low and a firm's competitive assets are customized to its home market, making option D correct.
Under this strategy, firms avoid direct confrontation with multinational enterprises by focusing on niche markets, specialized products, or protected domestic segments. Since globalization pressure is weak, firms are not forced to expand internationally, and their localized assets give them an advantage at home.
Dodgers may also cooperate selectively with MNEs or operate in areas where global competition is limited.
This strategy minimizes risk and preserves firm-specific advantages without costly global expansion.
Options A and B align with extender strategies. Option C aligns with contender strategies.
Thus, option D correctly identifies when the dodger strategy is appropriate.

NEW QUESTION # 29
Which statement about Federal Reserve lending to banks is true?

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

Answer: B

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 # 30
Which statement about the GDP deflator is true?

A. It includes fewer core economic measurements than GDP.
B. It is a more reliable indicator of economic well-being than real GDP.
C. Its percentage change from one year to the next is the inflation rate.
D. It follows a nearly strict decreasing pattern from a base year.

Answer: C

Explanation:
InGlobal Economics for Managers, theGDP deflatoris a price index used to measureinflation, making option A correct. The percentage change in the GDP deflator from one year to the next reflects the overall inflation rate of domestically produced goods and services.
The GDP deflator is calculated as:
GDP Deflator = (Nominal GDP / Real GDP) × 100
Because it includes all goods and services produced domestically, it provides a broad measure of price changes across the economy. Unlike the CPI, it is not based on a fixed basket of goods.
Option B is incorrect because real GDP, not the GDP deflator, is used to assess economic well-being. Option C is incorrect because the GDP deflator is derived from the same GDP components. Option D is incorrect because the deflator generally increases over time due to inflation.
Thus, option A is correct.

NEW QUESTION # 31
Which company has a natural resource-seeking strategic goal?

A. A company searching for a location with advanced technology clusters
B. A company searching for a location where there is an abundance of oil
C. A company searching for a location where labor costs are low
D. A company searching for a location with a large consumer market

Answer: B

Explanation:
In Global Economics for Managers , a natural resource-seeking strategy refers to firms that engage in foreign direct investment to access specific natural resources that are unavailable or costly in their home country. Option C correctly reflects this motive.
Companies in industries such as oil, gas, mining, agriculture, and timber often locate operations where resources are naturally abundant. The primary objective is to secure reliable and cost-effective access to essential inputs for production.
Option A describes a cost-seeking strategy, option B a market-seeking strategy, and option D a strategic asset- seeking strategy.
Thus, option C correctly identifies a natural resource-seeking strategic goal.

NEW QUESTION # 32
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