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

Section	Weight	Objectives
Topic 1: 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 2: Macroeconomics for Managers	10%	- Economic Indicators and Policies 1. GDP, inflation, unemployment, business cycles 2. Fiscal and monetary policy impacts
Topic 3: 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
Topic 4: Foreign Direct Investment and Global Strategy	20%	- Foreign Direct Investment (FDI) 1. Theories of FDI, costs and benefits 2. Location advantages and entry modes - Global Business Strategy 1. Porter's Diamond model 2. Strategic positions: Defender, Extender, Contender, Dodger
Topic 5: 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. Absolute advantage, Comparative advantage 2. Heckscher-Ohlin, Product life-cycle, Strategic trade theory

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Authentic Global-Economics-for-Managers Exam Questions - Global-Economics-for-Managers Dumps Guide

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q55-Q60):

NEW QUESTION # 55
An import tariff is implemented on furniture. What is the effect on consumer surplus for furniture?

A. It changes depending on market conditions.
B. It increases.
C. It decreases.
D. It does not change.

Answer: C

Explanation:
An import tariff raises the domestic price of imported furniture, which reduces consumer surplus. Option A is correct. Consumer surplus is the difference between what buyers are willing to pay and what they actually pay. When a tariff increases the market price, consumers pay more and typically buy less. This reduces the benefit consumers receive from participating in the market. Domestic producers may gain producer surplus, and the government may collect tariff revenue, but consumers lose because prices rise and available choices may shrink. Option B is too weak because the standard tariff effect on consumer surplus is a decrease. Option C is wrong because tariffs change prices and quantities. Option D is the opposite of the expected effect.
Tariffs redistribute welfare away from consumers.

NEW QUESTION # 56
What are characteristics of a market economy? (Choose TWO.)

A. It found a near ideal in China and the former Soviet Union during communism.
B. Factors of production are government-owned or state-owned.
C. It is characterized by the "invisible hand" of market forces.
D. It is defined by a government taking the authoritative role in the economy.
E. It was first noted by Adam Smith inThe Wealth of Nationsin 1776.
F. Supply, demand, and pricing are planned by the government.

Answer: C,E

Explanation:
InGlobal Economics for Managers, amarket economyis characterized by decentralized decision making and reliance on market forces, making optionsB and Ecorrect.
Option B is correct becauseAdam Smith, inThe Wealth of Nations(1776), laid the intellectual foundation for market economies. He argued that individuals pursuing their own self-interest unintentionally promote the overall welfare of society.
Option E correctly identifies the"invisible hand", a central concept in market economies. Prices, supply, and demand coordinate economic activity without centralized planning. Firms decide what to produce based on profitability, and consumers decide what to buy based on preferences and prices.
Options A, C, D, and F describecommand economies, where governments control production, pricing, and resource ownership-characteristics inconsistent with market economies.
Thus, B and E accurately describe defining features of a market economy.

NEW QUESTION # 57
Which statement about the GDP deflator is true?

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

Answer: B

NEW QUESTION # 58
Which characteristic is attributed to totalitarianism?

A. It contains some political risk, but risk that is qualitatively lower than in other political systems.
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 prizes an individual's right to freedom of expression and organization.

Answer: C

Explanation:
InGlobal Economics for Managers,totalitarianismis characterized by theconcentration of absolute political power in the hands of a single individual or a single ruling party, making option D the correct answer.
Under a totalitarian system, political authority is centralized, dissent is suppressed, and the state seeks to control not only political life but often economic, social, and ideological aspects of society as well.
Unlike democratic systems, totalitarian regimes do not permit free elections, political pluralism, or meaningful checks and balances. Citizens are not granted the right to elect representatives, nor are freedoms of expression, association, or organization protected. Instead, political opposition is restricted or eliminated, and state power is maintained through coercion, propaganda, and control of institutions.
Option A is incorrect because totalitarian systems generally involvehigh political risk, particularly for firms, due to arbitrary policy changes, expropriation risk, and weak legal protections. Option B describes liberal democratic systems that emphasize civil liberties. Option C is a defining feature of representative democracies, not totalitarian regimes.
Global Economics for Managersstresses that totalitarianism presents significant challenges for global managers. While such systems may offer short-term stability or rapid decision making, they often involve unpredictable policy shifts, weak protection of property rights, and limited transparency. These conditions increase political risk and complicate long-term business planning.
Therefore, option D correctly identifies the defining characteristic of totalitarianism as the delegation of absolute political control to one person or party.

NEW QUESTION # 59
A shopper purchases a shirt for $17 but was willing to pay $25. What does this indicate?

A. The producer surplus is $25.
B. The consumer surplus is $25.
C. The producer surplus is $17.
D. The consumer surplus is $8.

Answer: D

Explanation:
InGlobal Economics for Managers,consumer surplusis defined as the difference betweenwhat a consumer is willing to payfor a good andwhat the consumer actually pays, making option A correct.
In this example, the shopper was willing to pay $25 but paid only $17. The consumer surplus is therefore:
Consumer Surplus = Willingness to Pay # Price Paid
Consumer Surplus = $25 # $17 = $8
This $8 represents the net benefit the consumer gains from the transaction. Consumer surplus captures the idea that consumers often value goods more than the market price, and the difference contributes to their economic welfare.
Options B and C incorrectly refer to producer surplus, which depends on production costs rather than consumer willingness to pay. Option D incorrectly states that consumer surplus equals $25, which is the maximum willingness to pay, not the surplus.
Global Economics for Managersuses consumer surplus extensively to evaluate the effects of price changes, taxes, and trade policies on consumer welfare. Thus, option A is correct.

NEW QUESTION # 60
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