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

Section	Objectives
Topic 1: Competency 2: Political and Economic Forces	- Property Rights and the Rule of Law - Market Economy vs. Command Economy
Topic 2: Key Topics Across All Competencies	- Elastic vs. Inelastic Goods - Foreign Direct Investment (FDI) Impacts - International Trade Policies (Tariffs, Quotas) - Supply and Demand Shifts - Currency Appreciation and Depreciation - Global Business Strategies and Porter's Framework
Topic 3: Competency 1: International Trade and Currency Exchange	- Impact of Interest Rates on Financial Flows and Exchange Rates - Introduction to International Trade Theories - Currency Exchange Rate Determination
Topic 4: Competency 3: Economic Decision-Making by Firms and Customers	- Consumer Behavior (Budget Constraint, Indifference Curves) - Firm Behavior Under Different Market Structures (Perfect Competition, Monopoly, Oligopoly)

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q98-Q103):

NEW QUESTION # 98
Which statement about the GDP deflator is true?

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

Answer: B

NEW QUESTION # 99
What are examples of variable costs? Choose two answers.

A. The cost of the parts used in individual devices made by a computer manufacturer
B. A 5% tax charged by the government on variable inputs
C. A $1,000 license fee charged by the state government to operate a shop
D. The CEO's salary for a major manufacturing firm
E. The monthly internet cost in a business that produces women's apparel
F. The rent paid by a magazine publisher for its creative team

Answer: A,B

Explanation:
Variable costs change as output changes. Option A is correct because a tax charged on variable inputs increases as the firm uses more inputs to produce more output. Option E is also correct because the cost of parts used in individual devices rises directly with the number of devices produced. If the manufacturer produces more computers, it must buy more parts; if production falls, parts costs fall. The other choices are fixed costs because they generally do not vary directly with the quantity produced in the short run. A license fee, CEO salary, rent, and monthly internet service are normally paid regardless of whether output is high or low. Managers must separate fixed and variable costs to make production, pricing, shutdown, and break-even decisions.

NEW QUESTION # 100
Which situation illustrates the proposition that when formal constraints are unclear or fail, informal constraints play a larger role in reducing uncertainty and providing constancy to firms?

A. Firms relocating overseas due to a new domestic tax policy
B. A firm follows strict environmental practices despite lax local laws
C. Firms entering gray markets due to high taxes
D. Choosing a headquarters location based on cost of living, airports, and tax credits

Answer: B

Explanation:
InGlobal Economics for Managers, one core proposition of the institution-based view is thatwhen formal constraints are weak or unclear, informal constraints become more influential, making option D the correct illustration.
In option D, although local laws allow firms to bypass certain environmental safety standards, company leaders choose not to do so because ofdeep ethical values and social responsibility norms. These informal constraints-values, moral commitments, and corporate culture-guide behavior in the absence of strong formal enforcement.
Option A reflects rational economic decision making within clear formal rules. Option B illustrates response to formal policy change. Option C involves avoidance of formal rules rather than reliance on informal constraints.
Thus, option D best demonstrates how informal institutions substitute for weak formal institutions in guiding firm behavior.

NEW QUESTION # 101
Which good tends to have elastic demand?

A. A good with close substitutes
B. A good with few complements
C. A good that is tangible
D. A good with many complements

Answer: A

Explanation:
A good with close substitutes tends to have elastic demand because consumers can easily switch to another product when its price rises. Option A is correct. Elastic demand means quantity demanded responds strongly to price changes. For example, if one brand of bottled water increases in price and many similar brands are available, consumers can quickly shift purchases. This makes the seller more constrained when raising prices.
Goods with few substitutes, necessities, or small budget shares tend to have less elastic demand.
Complements affect cross-price relationships, but having many or few complements does not directly define whether demand for the good itself is elastic. Tangibility also does not determine elasticity. For managers, elasticity is critical because it affects pricing strategy, revenue forecasting, and competitive positioning.

NEW QUESTION # 102
What are examples of intellectual property? (Choose TWO.)

A. A subsidy
B. A patent
C. A trademark
D. A tariff

Answer: B,C

Explanation:
InGlobal Economics for Managers,intellectual property (IP)refers to legally protected creations of the mind.
Patentsandtrademarksare two major forms of IP, making options A and B correct.
Patents protect new inventions, processes, or technologies, granting exclusive rights to inventors for a limited time. Trademarks protect brand identifiers such as names and logos.
Subsidies and tariffs are government policies, not intellectual property protections.
Therefore, options A and B correctly identify examples of intellectual property.

NEW QUESTION # 103
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