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

Section	Objectives
Topic 1: Competency 2: Political and Economic Forces	- Property Rights and the Rule of Law - Market Economy vs. Command Economy
Topic 2: Competency 1: International Trade and Currency Exchange	- Impact of Interest Rates on Financial Flows and Exchange Rates - Introduction to International Trade Theories - Currency Exchange Rate Determination
Topic 3: Competency 3: Economic Decision-Making by Firms and Customers	- Consumer Behavior (Budget Constraint, Indifference Curves) - Firm Behavior Under Different Market Structures (Perfect Competition, Monopoly, Oligopoly)
Topic 4: Key Topics Across All Competencies	- Global Business Strategies and Porter's Framework - Foreign Direct Investment (FDI) Impacts - Currency Appreciation and Depreciation - Elastic vs. Inelastic Goods - International Trade Policies (Tariffs, Quotas) - Supply and Demand Shifts

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q42-Q47):

NEW QUESTION # 42
What is one of the three primary types of foreign exchange transactions?

A. Hedging transactions
B. Arbitrage transactions
C. Forward transactions
D. Spot transactions

Answer: D

Explanation:
In Global Economics for Managers, spot transactions are one of the three primary types of foreign exchange transactions, making option B correct. Spot transactions involve the immediate exchange of currencies, typically settled within two business days.
The three main foreign exchange transactions are:
Spot transactions
Forward transactions
Swap transactions
Spot transactions form the foundation of currency trading and are widely used for international trade payments and short-term currency needs.
Options C and D describe strategies rather than transaction types.
Thus, option B is correct.

NEW QUESTION # 43
What happens when the Federal Reserve increases the money supply?

A. The aggregate demand curve shifts to the right
B. The aggregate supply curve shifts to the left
C. The aggregate demand curve shifts to the left
D. The aggregate supply curve shifts to the right

Answer: A

NEW QUESTION # 44
What is a characteristic of a market economy?

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

Answer: B

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 # 45
A shopper purchases a shirt for $17 but was willing to pay $25. What does this indicate?

A. The producer surplus is $25.
B. The consumer surplus is $25.
C. The consumer surplus is $8.
D. The producer surplus is $17.

Answer: C

Explanation:
InGlobal Economics for Managers,consumer surplusis defined as the difference betweenwhat a consumer is willing to payfor a good andwhat the consumer actually pays, making option A correct.
In this example, the shopper was willing to pay $25 but paid only $17. The consumer surplus is therefore:
Consumer Surplus = Willingness to Pay # Price Paid
Consumer Surplus = $25 # $17 = $8
This $8 represents the net benefit the consumer gains from the transaction. Consumer surplus captures the idea that consumers often value goods more than the market price, and the difference contributes to their economic welfare.
Options B and C incorrectly refer to producer surplus, which depends on production costs rather than consumer willingness to pay. Option D incorrectly states that consumer surplus equals $25, which is the maximum willingness to pay, not the surplus.
Global Economics for Managersuses consumer surplus extensively to evaluate the effects of price changes, taxes, and trade policies on consumer welfare. Thus, option A is correct.

NEW QUESTION # 46
What are examples of variable costs? Choose two answers.

A. The monthly internet cost in a business that produces women's apparel
B. The cost of the parts used in individual devices made by a computer manufacturer
C. The CEO's salary for a major manufacturing firm
D. The rent paid by a magazine publisher for its creative team
E. A $1,000 license fee charged by the state government to operate a shop
F. A 5% tax charged by the government on variable inputs

Answer: B,F

Explanation:
Variable costs change as output changes. Option A is correct because a tax charged on variable inputs increases as the firm uses more inputs to produce more output. Option E is also correct because the cost of parts used in individual devices rises directly with the number of devices produced. If the manufacturer produces more computers, it must buy more parts; if production falls, parts costs fall. The other choices are fixed costs because they generally do not vary directly with the quantity produced in the short run. A license fee, CEO salary, rent, and monthly internet service are normally paid regardless of whether output is high or low. Managers must separate fixed and variable costs to make production, pricing, shutdown, and break-even decisions.

NEW QUESTION # 47
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