Exam Questions for the WGU Global-Economics-for-Managers - Improve Your Career Prospects

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

Section	Objectives
Global Economics	- Exchange rates and currency systems - International trade and comparative advantage - Global economic institutions and trade policy
Foundations of Economics	- Market systems and economic models - Scarcity, opportunity cost, and economic reasoning
Macroeconomic Environment	- Fiscal and monetary policy - GDP, inflation, and unemployment
Managerial Economic Decision-Making	- Cost-benefit analysis in business contexts - Risk and uncertainty in global markets
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 (Q78-Q83):

NEW QUESTION # 78
Which statement about the GDP deflator is true?

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

Answer: A

NEW QUESTION # 79
What is true about forward transactions?

A. They allow participants to buy and sell currencies now for future delivery.
B. They convert one currency into another at one time with an agreement to revert it back at another time in the future.
C. They are the classic single-shot exchange of one currency for another.
D. They allow traders to sell currency holdings at an exchange rate in the past.

Answer: A

Explanation:
Forward transactions are foreign exchange contracts in which two parties agree today to exchange currencies at a specified rate on a future date. Option A is correct because the transaction terms are set now, but delivery occurs later. Managers use forward transactions to reduce exchange-rate uncertainty when they expect to receive or pay foreign currency in the future. Option B describes a spot transaction, where currencies are exchanged immediately or within a very short settlement period. Option C describes a swap transaction, which combines an exchange now with a reverse exchange later. Option D is incorrect because forward transactions do not allow trading at a past exchange rate. They lock in a future exchange rate based on current agreement.

NEW QUESTION # 80
An import tariff is implemented on apples. What is the effect on domestic government revenue?

A. It remains unchanged
B. It decreases
C. It becomes negative
D. It increases

Answer: D

Explanation:
InGlobal Economics for Managers, animport tariffgeneratesgovernment revenue, making option C correct.
A tariff is a tax on imported goods. When apples are imported and subject to a tariff, the government collects revenue equal to the tariff rate multiplied by the quantity imported. Although the quantity of imports usually declines after a tariff is imposed, the government still earns revenue on remaining imports.
This revenue comes at the expense of consumers, who face higher prices, and contributes to deadweight loss.
However, from the government's perspective, tariff revenue increases.
Thus, option C is correct.

NEW QUESTION # 81
What is one characteristic of a market shortage?

A. Price is greater than the equilibrium price.
B. There is downward pressure on price.
C. Quantity supplied is less than equilibrium quantity.
D. Quantity demanded is less than equilibrium quantity.

Answer: C

Explanation:
InGlobal Economics for Managers, amarket shortageoccurs whenquantity demanded exceeds quantity suppliedat the current price. A defining characteristic of a shortage is thatquantity supplied is less than the equilibrium quantity, making option D correct.
Shortages typically arise when prices are set below equilibrium, such as under price controls. At these lower prices, consumers demand more, while producers supply less, creating excess demand.
Option A describes a surplus condition. Option B contradicts the definition of shortage. Option C is incorrect because shortages createupward, not downward, pressure on prices.
Thus, option D correctly identifies a characteristic of a market shortage.

NEW QUESTION # 82
Which statement about consumer surplus is true?

A. It represents government revenue
B. It measures total production efficiency
C. It is a good measure of economic well-being if policymakers want to satisfy buyers' preferences
D. It measures the well-being of sellers

Answer: C

Explanation:
InGlobal Economics for Managers,consumer surplusis a key measure ofbuyer welfare, making option B correct.
Consumer surplus equals the difference between what consumers are willing to pay and what they actually pay. Policymakers often use it to assess how market outcomes or policies affect consumers.
Options A and C describe producer surplus and tax revenue. Option D refers to total surplus, not consumer surplus alone.
Thus, option B is correct.

NEW QUESTION # 83
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