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

Section	Weight	Objectives
Macroeconomics for Managers	10%	- Economic Indicators and Policies 1. GDP, inflation, unemployment, business cycles 2. Fiscal and monetary policy impacts
International Trade Theory and Policy	25%	- Trade Policies and Barriers 1. Tariffs, quotas, subsidies, embargoes 2. Economic integration: EU, USMCA, ASEAN - Classical and Modern Trade Theories 1. Heckscher-Ohlin, Product life-cycle, Strategic trade theory 2. Absolute advantage, Comparative advantage
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. Theories of FDI, costs and benefits 2. Location advantages and entry modes
Foundations of Global Economics	20%	- Views on Globalization 1. Drivers and consequences of globalization 2. New view, Evolutionary view, Pendulum view - Economic Systems and Institutions 1. Market, command, and mixed economies 2. Political, legal, and cultural frameworks
Global Finance and Monetary Systems	25%	- Balance of Payments and International Monetary System 1. Current account, capital account, official reserves 2. Fixed vs floating exchange rates, IMF, World Bank - Foreign Exchange Markets 1. Hedging and risk management 2. Exchange rate determination, currency regimes

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q124-Q129):

NEW QUESTION # 124
What are key features of an oligopoly? (Choose THREE.)

A. There is little motivation for cooperation between firms.
B. Firms are independent of one another, like competitive firms.
C. Firms in an oligopoly are interdependent in ways competitive firms are not.
D. The actions of any one seller can have a large impact on the profits of other sellers.
E. The actions of any one seller have little impact on others' profits.
F. There are a few sellers.

Answer: C,D,F

Explanation:
In Global Economics for Managers , oligopolies are defined by a small number of sellers , interdependence
, and strategic interaction , making options A, B, and C correct.
Option C is foundational: oligopolies consist of only a few dominant firms , unlike perfect or monopolistic competition. Because of this concentration, firms cannot ignore competitors' actions.
Option B highlights interdependence , a defining feature of oligopolies. Firms must consider how rivals will respond to pricing, output, or strategic changes. This leads to behavior such as price leadership, tacit collusion, or strategic rivalry.
Option A follows directly from interdependence. When one firm changes price or output, it can significantly affect market conditions and the profits of competing firms.
Options D and E incorrectly describe competitive markets, where firms are price takers. Option F is incorrect because oligopolies often have strong incentives to cooperate, either explicitly or tacitly, to maintain profitability.
Thus, A, B, and C accurately capture the essential characteristics of an oligopoly.

NEW QUESTION # 125
What is a tariff levied on imports that are selling below cost in order to unfairly drive domestic firms out of business?

A. Factor endowment
B. Deadweight cost
C. Opportunity cost
D. Antidumping duty

Answer: D

Explanation:
An antidumping duty is a tariff imposed on imported goods that are sold at unfairly low prices, often below cost or below the price charged in the exporter's home market. Dumping can harm domestic producers because foreign firms may temporarily underprice goods to gain market share or drive competitors out of business. Governments use antidumping duties to offset this unfair pricing and restore competitive conditions.
Option C is correct because it directly identifies the trade remedy used against below-cost imports. Factor endowment refers to a country's available resources, not a tariff. Deadweight cost is the net welfare loss caused by tariffs or other distortions. Opportunity cost is the value of the next best alternative forgone when a choice is made.

NEW QUESTION # 126
Barriers to entry help to create monopolies. What is a common type of barrier?

A. Progressive tax structures
B. Economies of scale in the production process
C. A firm purchasing competitors
D. Elastic demand curves

Answer: B

Explanation:
Economies of scale are a common barrier to entry that can help create monopoly power. Option D is correct because when average costs decline as output increases, a large established firm may produce at a lower per- unit cost than potential entrants. New firms entering at small scale may be unable to match the incumbent's cost advantage, making entry unattractive or impossible. This is especially important in industries with high fixed costs, such as utilities, railways, telecommunications infrastructure, and large-scale manufacturing.
Option A may reduce competition, but it is not the standard structural barrier described here. Elastic demand curves do not block entry. Progressive tax structures are tax systems, not typical monopoly barriers.
Economies of scale are one of the classic reasons monopolies can persist.

NEW QUESTION # 127
Which effect does increased government spending have on aggregate demand if the multiplier effect is greater than the crowding-out effect?

A. Aggregate demand increases by less than the increase in government spending.
B. Aggregate demand decreases by less than the increase in government spending.
C. Aggregate demand decreases by more than the increase in government spending.
D. Aggregate demand increases by more than the increase in government spending.

Answer: D

Explanation:
InGlobal Economics for Managers, when themultiplier effect exceeds the crowding-out effect, increased government spending causesaggregate demand (AD) to rise by more than the initial increase in spending, making option A correct.
The multiplier effect occurs because government spending generates income, which leads to further consumption. Crowding out occurs when government borrowing raises interest rates and reduces private investment. If the multiplier is stronger, the net effect is an amplified increase in AD.
Thus, option A is correct.

NEW QUESTION # 128
An import tariff is implemented on apples. What is the effect on domestic government revenue?

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

Answer: B

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 # 129
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