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| Section | Objectives |
|---|---|
| Foundations of Economics | - Market systems and economic models - Scarcity, opportunity cost, and economic reasoning |
| Macroeconomic Environment | - GDP, inflation, and unemployment - Fiscal and monetary policy |
| Microeconomics for Managers | - Supply and demand analysis - Elasticity and pricing decisions - Market structures and competition |
| Global Economics | - Exchange rates and currency systems - International trade and comparative advantage - Global economic institutions and trade policy |
| Managerial Economic Decision-Making | - Risk and uncertainty in global markets - Cost-benefit analysis in business contexts |
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This kind of polished approach is beneficial for a commendable grade in the WGU Global Economics for Managers (C211, UZC2) (Global-Economics-for-Managers) exam. While attempting the exam, take heed of the clock ticking, so that you manage the WGU Global Economics for Managers (C211, UZC2) (Global-Economics-for-Managers) questions in a time-efficient way. Even if you are completely sure of the correct answer to a question, first eliminate the incorrect ones, so that you may prevent blunders due to human error.
NEW QUESTION # 58
When demand decreases and supply stays the same, what happens to the equilibrium point of price and quantity? (Choose TWO.)
Answer: A,C
Explanation:
InGlobal Economics for Managers, a decrease in demand with supply unchanged leads to alower equilibrium price and a lower equilibrium quantity, making options B and D correct.
A leftward shift of the demand curve creates excess supply at the original price. To eliminate the surplus, prices fall, and quantity exchanged decreases until a new equilibrium is reached.
Options A and C contradict standard supply-demand analysis.
Thus, B and D are correct.
NEW QUESTION # 59
In a monopoly, which statements are likely true? (Choose TWO.)
Answer: B,E
Explanation:
InGlobal Economics for Managers, monopolies are characterized bya single seller offering a unique product andstrong barriers to entry, making options A and B correct.
Monopolists face no close substitutes and can influence market prices. Barriers to entry-such as legal protections, resource ownership, or economies of scale-prevent competitors from entering the market.
Options C and D apply to perfect competition. Option E contradicts the definition of monopoly.
Thus, options A and B correctly describe monopoly characteristics.
NEW QUESTION # 60
What are costs to home countries of foreign direct investment (FDI)? (Choose TWO.)
Answer: C,D
Explanation:
According toGlobal Economics for Managers, foreign direct investment (FDI) can generate substantial benefits for both home and host countries, but it may also impose certain costs on thehome country, particularly in the short to medium term. Two commonly identified costs arejob lossandcapital outflow, making options A and D correct.
Job lossmay occur when firms shift production facilities, service operations, or manufacturing plants from the home country to foreign locations. This relocation is often driven by lower labor costs, proximity to emerging markets, or favorable regulatory environments abroad. While such decisions may increase firm profitability and global competitiveness, they can lead to unemployment or downward wage pressure in specific domestic industries.Global Economics for Managersemphasizes that these adjustment costs are often concentrated in particular regions or sectors, even if the national economy benefits in the long run.
Capital outflowrefers to the movement of financial resources from the home country to finance investment abroad. When domestic firms invest overseas, funds that could have been used for domestic investment are instead allocated to foreign operations. In the short run, this may reduce domestic capital formation and slow economic growth, particularly if domestic investment opportunities remain underfunded.
The remaining options are less consistent with standard managerial economics analysis. Reduced standard of living is not a direct or inevitable consequence of FDI and often depends on broader macroeconomic conditions. Cultural disintegration is a sociological concern rather than an economic cost emphasized in managerial economics. Loss of sovereignty is typically associated with host countries rather than home countries. Loss of intellectual property may occur in certain cases but is not a primary or systematic cost identified for home countries in FDI theory.
Thus, job loss and capital outflow best represent the principal costs to home countries highlighted inGlobal Economics for Managers.
NEW QUESTION # 61
What is an example of a company that is market-seeking?
Answer: D
Explanation:
InGlobal Economics for Managers, amarket-seeking companyis one that invests in or enters a foreign location primarily toserve local or regional customers, making option C the correct answer. Market-seeking behavior is driven by demand-side considerations rather than cost or resource availability.
Option C describes a firm searching for a location where there ishigh consumer interest in camping supplies
, which directly reflects a desire to access and serve a specific market. Such firms are motivated by factors like market size, growth potential, consumer preferences, and proximity to customers. Market-seeking firms often establish foreign subsidiaries, sales offices, or production facilities to adapt products to local tastes and respond quickly to demand.
Option A describes aresource-seekingfirm, focused on obtaining low-cost or specialized inputs. Option B also reflects resource-seeking behavior, specifically in extractive industries. Option D describes acost-seeking (efficiency-seeking)firm that locates production in regions with low labor costs.
Global Economics for Managersclassifies foreign direct investment motives into market-seeking, resource- seeking, efficiency-seeking, and strategic asset-seeking. Market-seeking investment is particularly common in consumer goods and service industries, where understanding local preferences is critical for success.
For managers, recognizing market-seeking motives helps guide decisions about location, marketing strategy, and product adaptation. Thus, option C accurately illustrates a market-seeking company.
NEW QUESTION # 62
Which system has elements of a market economy and a command economy?
Answer: C
Explanation:
InGlobal Economics for Managers, amixed economyis defined as an economic system that combines elements of both amarket economyand acommand economy, making option C the correct answer. In a mixed economy, resource allocation is determined partly by market forces-such as supply, demand, and prices-and partly by government intervention through regulation, taxation, public spending, and state ownership in selected sectors.
Most modern economies are mixed economies. While private firms and consumers make many economic decisions independently, governments play an active role in correcting market failures, providing public goods, redistributing income, and stabilizing the economy. Examples include regulations on labor and environmental standards, public education and healthcare systems, and social welfare programs.
Option A, fair economy, and option D, compromise economy, are not standard economic classifications.
Option B, market-command economy, is not a formally recognized system in managerial economics.
Global Economics for Managersemphasizes that understanding mixed economies is critical for managers because government policies directly affect costs, pricing, competition, and strategic decisions. Thus, option C correctly identifies the system that blends market and command features.
NEW QUESTION # 63
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