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

Section	Objectives
Macroeconomic Environment	- GDP, inflation, and unemployment - Fiscal and monetary policy
Foundations of Economics	- Scarcity, opportunity cost, and economic reasoning - Market systems and economic models
Microeconomics for Managers	- Elasticity and pricing decisions - Supply and demand analysis - Market structures and competition
Managerial Economic Decision-Making	- Risk and uncertainty in global markets - Cost-benefit analysis in business contexts
Global Economics	- Exchange rates and currency systems - International trade and comparative advantage - Global economic institutions and trade policy

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q69-Q74):

NEW QUESTION # 69
How does the Federal Reserve lower the federal funds rate?

A. By purchasing government bonds
B. By raising reserve requirements
C. By selling government bonds
D. By increasing taxes

Answer: A

Explanation:
InGlobal Economics for Managers, the Federal Reserve lowers thefederal funds ratebypurchasing government bonds, making option C correct.
Bond purchases increase bank reserves, easing liquidity conditions in the interbank market. With more reserves available, banks lend to each other at lower interest rates, reducing the federal funds rate.
Options A and B raise interest rates, while option D is fiscal policy.
Therefore, option C is correct.

NEW QUESTION # 70
What are characteristics of monopolistic competition? (Choose THREE.)

A. Free entry and exit
B. One seller
C. Many sellers
D. Homogeneous products
E. Product differentiation

Answer: A,C,E

Explanation:
InGlobal Economics for Managers,monopolistic competitionis characterized bymany sellers,product differentiation, andfree entry and exit, making options A, B, and C correct.
Firms sell products that are similar but not identical, allowing them some degree of pricing power. Examples include restaurants, clothing brands, and personal services. Because entry is relatively easy, economic profits tend to be eliminated in the long run.
Options D and E describe monopoly or perfect competition, not monopolistic competition.
Thus, A, B, and C correctly describe monopolistic competition.

NEW QUESTION # 71
What is a feature of a democracy?

A. It gives citizens the right to elect representatives to govern on their behalf.
B. It often results in higher risk associated with political changes that may negatively impact domestic and foreign firms.
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.

Answer: A

Explanation:
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.

NEW QUESTION # 72
What is true about producer surplus?

A. It measures social welfare
B. It equals total revenue
C. It is used to measure the well-being of sellers
D. It measures the well-being of consumers

Answer: C

Explanation:
InGlobal Economics for Managers,producer surplusmeasures thewell-being of sellers, making option B correct.
Producer surplus is the difference between the price producers receive and the minimum price they are willing to accept. It reflects profits plus fixed costs and indicates how much sellers benefit from participating in a market.
Options A and D confuse producer surplus with consumer or total surplus. Option C is incorrect because producer surplus is not total revenue.
Therefore, option B is correct.

NEW QUESTION # 73
When is it best for a firm to restart production?

A. When total cost is greater than total revenue
B. When total variable costs are less than total revenue after a short-term stop
C. When marginal cost is greater than marginal revenue
D. When total revenue is less than total cost

Answer: B

Explanation:
A firm should restart production when total revenue is greater than total variable cost, meaning the firm can cover its variable costs and contribute something toward fixed costs. Option C is correct because, after a short- term shutdown, fixed costs may still exist whether the firm produces or not. The key restart decision is whether operating revenue can cover variable operating expenses. If total revenue exceeds total variable cost, production reduces losses or may generate profit. Option A is not sufficient because total revenue being less than total cost may still allow production to be better than shutdown if variable costs are covered. Option B means producing additional units lowers profit, so it supports decreasing production. Option D does not justify restarting. The short-run rule focuses on variable cost coverage.

NEW QUESTION # 74
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