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

Section	Weight	Objectives
Topic 1: Foreign Direct Investment and Global Strategy	20%	- Global Business Strategy 1. Strategic positions: Defender, Extender, Contender, Dodger 2. Porter's Diamond model - Foreign Direct Investment (FDI) 1. Location advantages and entry modes 2. Theories of FDI, costs and benefits
Topic 2: Foundations of Global Economics	20%	- Views on Globalization 1. New view, Evolutionary view, Pendulum view 2. Drivers and consequences of globalization - Economic Systems and Institutions 1. Market, command, and mixed economies 2. Political, legal, and cultural frameworks
Topic 3: International Trade Theory and Policy	25%	- Classical and Modern Trade Theories 1. Heckscher-Ohlin, Product life-cycle, Strategic trade theory 2. Absolute advantage, Comparative advantage - Trade Policies and Barriers 1. Economic integration: EU, USMCA, ASEAN 2. Tariffs, quotas, subsidies, embargoes
Topic 4: Macroeconomics for Managers	10%	- Economic Indicators and Policies 1. GDP, inflation, unemployment, business cycles 2. Fiscal and monetary policy impacts
Topic 5: Global Finance and Monetary Systems	25%	- 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

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q99-Q104):

NEW QUESTION # 99
What happens when the Federal Reserve increases the money supply?

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

Answer: D

NEW QUESTION # 100
In an oligopoly with an initial agreement to maximize total profit, which statements might a firm motivated by self-interest likely make? (Choose THREE.)

A. "Regardless of what my fellow firms do, I am better off raising production beyond the agreed-to level."
B. "If my fellow firms live up to the agreement, I am better off raising production."
C. "I am better off reducing output below the agreed level."
D. "I should always cooperate, regardless of outcomes."
E. "If my fellow firms fail to live up to the agreement and raise production, I am better off raising production myself."

Answer: A,B,E

Explanation:
InGlobal Economics for Managers, oligopolies often face aprisoner's dilemma, making deviation from collusive agreements individually rational. Options A, B, and C correctly reflect this logic.
If others cooperate, cheating by increasing output raises individual profit. If others cheat, matching their behavior minimizes losses. Therefore, regardless of others' actions, raising output appears optimal.
Options D and E contradict self-interested incentives.
Thus, A, B, and C correctly capture oligopolistic behavior.

NEW QUESTION # 101
The formula "fixed costs (FC) + variable costs (VC)" represents which quantity?

A. Average cost
B. Implicit cost
C. Total cost
D. Marginal cost

Answer: C

Explanation:
InGlobal Economics for Managers,total cost (TC)is defined as the sum offixed costs (FC)andvariable costs (VC), making option C correct. The formula is:
TC = FC + VC
Fixed costs do not change with output in the short run, while variable costs vary with production. Total cost captures the full cost of producing a given level of output.
Average cost divides total cost by quantity, marginal cost measures the cost of one additional unit, and implicit cost reflects opportunity costs.
Therefore, option C correctly identifies total cost.

NEW QUESTION # 102
Which statement is true for a monopoly firm, but not for a competitive firm?

A. Economic profit is zero in the long run.
B. The marginal revenue is less than its price.
C. The marginal revenue equals the price.
D. The firm is a price taker.

Answer: B

Explanation:
In Global Economics for Managers , a key distinction between monopolies and perfectly competitive firms is the relationship between price and marginal revenue . For a monopoly, marginal revenue is less than price
, making option C correct.
A monopoly faces a downward-sloping demand curve , meaning that to sell an additional unit, the firm must lower the price not only for the marginal unit but also for all previous units sold. As a result, marginal revenue declines faster than price and always lies below the demand curve.
In contrast, a perfectly competitive firm is a price taker . It can sell as much output as it wants at the market price, so marginal revenue equals price.
Options A and B describe competitive firms, not monopolies. Option D is incorrect because monopolies can earn economic profits in the long run due to entry barriers.
Thus, option C correctly identifies a feature unique to monopoly firms.

NEW QUESTION # 103
If the demand for a good is elastic, what is true?

A. Price and total revenue move in the same direction.
B. The quantity demanded responds substantially to changes in the price.
C. The quantity demanded responds only slightly to changes in the price.
D. Total revenue increases with a change in price in either direction.

Answer: B

Explanation:
InGlobal Economics for Managers, demand is said to beelasticwhen thequantity demanded responds substantially to changes in price, making option A correct. Elastic demand occurs when consumers are highly sensitive to price changes, often because close substitutes are available or the good represents a significant portion of income.
When demand is elastic, a small percentage change in price leads to a larger percentage change in quantity demanded. This relationship has important implications for pricing and revenue decisions. In such cases, price and total revenue move inopposite directions-a price decrease increases total revenue, while a price increase reduces total revenue.
Option B is incorrect because total revenue does not increase with price changes in both directions. Option C is false because price and total revenue move in opposite directions under elastic demand. Option D describes inelastic demand, where quantity responds only slightly to price changes.
Managers must understand elasticity when setting prices, forecasting revenue, and designing marketing strategies. Therefore, option A accurately defines elastic demand.

NEW QUESTION # 104
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