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

SectionWeightObjectives
Topic 1: Global Finance and Monetary Systems25%- Foreign Exchange Markets
  • 1. Exchange rate determination, currency regimes
  • 2. Hedging and risk management
- Balance of Payments and International Monetary System
  • 1. Current account, capital account, official reserves
  • 2. Fixed vs floating exchange rates, IMF, World Bank
Topic 2: Foundations of Global Economics20%- Views on Globalization
  • 1. Drivers and consequences of globalization
  • 2. New view, Evolutionary view, Pendulum view
- Economic Systems and Institutions
  • 1. Political, legal, and cultural frameworks
  • 2. Market, command, and mixed economies
Topic 3: Foreign Direct Investment and Global Strategy20%- 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
Topic 4: International Trade Theory and Policy25%- 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
Topic 5: Macroeconomics for Managers10%- Economic Indicators and Policies
  • 1. Fiscal and monetary policy impacts
  • 2. GDP, inflation, unemployment, business cycles

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q130-Q135):

NEW QUESTION # 130
What are properties of a typical indifference curve? (Choose TWO.)

Answer: A,B

Explanation:
InGlobal Economics for Managers, indifference curves have two key properties:higher curves represent higher utility, andcurves do not cross, making options A and C correct.
If curves crossed, preferences would be inconsistent. Higher curves indicate greater satisfaction.
Options B and D violate consumer theory assumptions.
Thus, A and C are correct.


NEW QUESTION # 131
What is true about gross domestic product (GDP)?

Answer: C

Explanation:
InGlobal Economics for Managers,gross domestic product (GDP)is widely regarded asthe single best available measure of a society's economic well-being, making option A correct. GDP measures the total market value of all final goods and services produced within a country's borders during a given period.
Although GDP has limitations-it does not account for income distribution, environmental degradation, or non-market activities-it remains the most comprehensive and consistent indicator of economic performance across countries and over time.
Option B is incorrect because inflation is measured by price indices such as the GDP deflator or the consumer price index (CPI), not by GDP growth. Option C is incorrect because GDP values goods and services at market prices without weighting one more heavily than the other. Option D is incorrect because GDP excludes income earned by citizens working abroad; that income is included in gross national income (GNI), not GDP.
Global Economics for Managersemphasizes that GDP is particularly useful for comparing economic output and living standards internationally, especially when adjusted for purchasing power parity.
Thus, option A correctly describes GDP.


NEW QUESTION # 132
What is one of the three primary types of foreign exchange transactions?

Answer: B

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 # 133
Which statement is a description of theocratic law?

Answer: C

Explanation:
InGlobal Economics for Managers,theocratic lawis defined as a legal systembased on religious teachings and dogma, making option A the correct answer. In this system, religious authorities interpret and enforce laws derived from sacred texts, and there is little separation between religion and the state.
Theocratic legal systems are typically found in countries where religion plays a central role in governance.
Laws governing personal behavior, business practices, family matters, and social conduct are often derived directly from religious doctrine. For managers, this means that compliance requires not only legal understanding but also sensitivity to religious norms and values.
Option B describescivil law, which is widely used around the world. Option C also refers to civil law, emphasizing codified statutes. Option D describescommon law, which relies on judicial precedents and case law.
Global Economics for Managershighlights that theocratic law can create unique challenges for multinational firms, particularly when religious principles conflict with international business norms or corporate policies.
Understanding the nature of the legal system is therefore essential for risk assessment and strategic planning.
Thus, option A accurately describes theocratic law.


NEW QUESTION # 134
When is it best for a firm to decrease production?

Answer: B

Explanation:
A firm should decrease production when marginal cost is greater than marginal revenue. Option A is correct because each additional unit costs more to produce than it brings in revenue, which reduces profit. The standard profit-maximizing rule is to produce where marginal revenue equals marginal cost. If marginal cost exceeds marginal revenue, output is too high and the firm should reduce production. Option B does not justify decreasing production because total revenue greater than total cost indicates profit. Options C and D describe conditions under which restarting or continuing production may be reasonable because price covers average variable cost. The question is about marginal decision making, not total profitability or shutdown rules. For managers, the key rule is simple: do not produce units that reduce profit.


NEW QUESTION # 135
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