WGU Global-Economics-for-Managers Fragen und Antworten, WGU Global Economics for Managers (C211, UZC2) Prüfungsfragen

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

Section	Weight	Objectives
Topic 1: International Trade Theory and Policy	25%	- Classical and Modern Trade Theories 1. Absolute advantage, Comparative advantage 2. Heckscher-Ohlin, Product life-cycle, Strategic trade theory - Trade Policies and Barriers 1. Tariffs, quotas, subsidies, embargoes 2. Economic integration: EU, USMCA, ASEAN
Topic 2: Global Finance and Monetary Systems	25%	- Foreign Exchange Markets 1. Hedging and risk management 2. Exchange rate determination, currency regimes - Balance of Payments and International Monetary System 1. Fixed vs floating exchange rates, IMF, World Bank 2. Current account, capital account, official reserves
Topic 3: 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 4: Macroeconomics for Managers	10%	- Economic Indicators and Policies 1. GDP, inflation, unemployment, business cycles 2. Fiscal and monetary policy impacts
Topic 5: 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

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WGU Global Economics for Managers (C211, UZC2) Global-Economics-for-Managers Prüfungsfragen mit Lösungen (Q118-Q123):

118. Frage
What is the Nash equilibrium?

A. A particular situation between two entities that illustrates why cooperation is difficult to maintain even when it is mutually beneficial
B. A group of firms illegally acting in unison to improve profits or dominate a market
C. A situation in which economic actors interacting with one another each choose their best strategy from among all available strategies currently being used by said actors
D. An agreement among firms in a market over production and price

Antwort: C

Begründung:
A Nash equilibrium occurs when each participant in a strategic interaction chooses the best available strategy given the strategies chosen by others. Option C is correct because no actor has an incentive to change its strategy unilaterally once the equilibrium is reached. This concept is central to game theory and is especially useful in oligopoly analysis, where firms must consider how rivals will respond to pricing, output, advertising, or product decisions. Option A describes the prisoner's dilemma more specifically, which can produce a Nash equilibrium but is not the definition itself. Option B describes collusion or cartel behavior. Option D describes illegal coordinated action by firms. Managers use Nash equilibrium logic to anticipate competitor behavior and understand why mutually beneficial cooperation can be unstable.

119. Frage
What is a feature of a democracy?

A. It often results in higher risk associated with political changes that may negatively impact domestic and foreign firms.
B. It gives citizens the right to elect representatives to govern on their behalf.
C. It delegates absolute political control over the population to one person or party.
D. It can and often does lead to nationalization, or expropriation, of foreign assets.

Antwort: B

Begründung:
A democracy gives citizens the right to elect representatives who govern on their behalf. Option D is correct because political participation, representative government, accountability, and civil liberties are core features of democratic systems. Democracies generally have institutional checks and balances, rule of law, and mechanisms for peaceful leadership change. These features can reduce arbitrary government action and improve transparency for businesses. Option B describes totalitarianism, where one person or party holds absolute political control. Option C describes a political risk that may occur in some countries but is not a defining feature of democracy. Option A is also incorrect because democracies usually reduce extreme political uncertainty compared with authoritarian systems, although policy changes can still affect firms. The defining feature is citizen representation through elections.

120. Frage
Which strategy for responding to multinational enterprises is appropriate in a situation in which there is low industry pressure to globalize and competitive assets are customized to home markets?

A. Responder strategy
B. Retainer strategy
C. Defender strategy
D. Contender strategy

Antwort: C

Begründung:
The defender strategy is appropriate when industry pressure to globalize is low and the firm's competitive assets are customized to the home market. In this situation, the firm does not face strong pressure to expand globally, and its strengths are mainly local, such as domestic customer relationships, local distribution knowledge, local brand reputation, or familiarity with national regulations. Option C is correct because a defender focuses on protecting its home-market position by exploiting local advantages that multinational enterprises may find difficult to copy. A contender strategy fits high globalization pressure with home-market- customized assets. An extender strategy would involve using transferable capabilities abroad, and a dodger strategy usually involves cooperating with or selling to multinational firms when pressure is high and assets are weak. Therefore, defender is the correct response.

121. Frage
What is the definition of marginal cost?

A. The fixed cost of production
B. The total cost divided by total output
C. The increase in cost that arises from producing an additional unit of output
D. The opportunity cost of capital

Antwort: C

Begründung:
InGlobal Economics for Managers,marginal cost (MC)is defined asthe increase in total cost that arises from producing one additional unit of output, making option B correct. Marginal cost plays a central role in production and pricing decisions because it reflects the incremental cost of expanding output.
Marginal cost typically includes additional labor, materials, and variable inputs required for one more unit.
Fixed costs do not affect marginal cost in the short run because they do not change with output. As production increases, marginal cost may initially decline due to specialization and efficiency gains, but it often rises later because of diminishing marginal returns.
Managers rely on marginal cost to determine optimal output levels. Producing beyond the point where marginal cost exceeds marginal revenue reduces profit. Therefore, understanding marginal cost is essential for profit maximization, cost control, and operational planning.
Thus, option B correctly defines marginal cost.

122. Frage
Which term best describes a market structure of limited competition in which the market is shared by a small number of sellers?

A. Perfect competition
B. Monopolistic competition
C. Oligopoly
D. Monopoly

Antwort: C

Begründung:
InGlobal Economics for Managers, anoligopolyis defined as a market structure characterized bylimited competition in which a small number of sellers dominate the market, making option C the correct answer.
These firms collectively control a large share of total market output, and each firm's actions significantly influence the behavior and profitability of the others.
Oligopolistic markets are common in industries with high barriers to entry, such as automobiles, airlines, telecommunications, and energy. Barriers may include economies of scale, high capital requirements, technological advantages, or government regulation. Because only a few firms operate in the market, strategic decision making becomes critical.
Option A, monopoly, involves a single seller. Option B, monopolistic competition, includes many sellers offering differentiated products. Option D, perfect competition, involves many sellers with no market power.
Global Economics for Managersemphasizes that oligopolies are marked by strategic interaction, where firms must anticipate competitors' reactions when setting prices, output, advertising, or investment levels. This interdependence distinguishes oligopoly from other market structures.
Thus, option C accurately describes a market structure with limited competition and a small number of sellers.

123. Frage
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