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

SectionObjectives
Topic 1: Foundations of Economics- Market systems and economic models
- Scarcity, opportunity cost, and economic reasoning
Topic 2: Global Economics- Global economic institutions and trade policy
- Exchange rates and currency systems
- International trade and comparative advantage
Topic 3: Managerial Economic Decision-Making- Risk and uncertainty in global markets
- Cost-benefit analysis in business contexts
Topic 4: Macroeconomic Environment- GDP, inflation, and unemployment
- Fiscal and monetary policy
Topic 5: Microeconomics for Managers- Elasticity and pricing decisions
- Supply and demand analysis
- Market structures and competition

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q63-Q68):

NEW QUESTION # 63
Which strategy for responding to multinational enterprises is appropriate in a situation in which there is low industry pressure to globalize and competitive assets are customized to home markets?

Answer: C

Explanation:
The defender strategy is appropriate when industry pressure to globalize is low and the firm's competitive assets are customized to the home market. In this situation, the firm does not face strong pressure to expand globally, and its strengths are mainly local, such as domestic customer relationships, local distribution knowledge, local brand reputation, or familiarity with national regulations. Option C is correct because a defender focuses on protecting its home-market position by exploiting local advantages that multinational enterprises may find difficult to copy. A contender strategy fits high globalization pressure with home-market- customized assets. An extender strategy would involve using transferable capabilities abroad, and a dodger strategy usually involves cooperating with or selling to multinational firms when pressure is high and assets are weak. Therefore, defender is the correct response.


NEW QUESTION # 64
What is one characteristic of a market surplus?

Answer: B

Explanation:
InGlobal Economics for Managers, amarket surplusoccurs whenquantity supplied exceeds quantity demanded, making option B correct.
Surpluses typically arise when prices are set above the equilibrium level. At higher prices, producers supply more while consumers demand less, creating excess supply. Market forces then place downward pressure on prices until equilibrium is restored.
Options A and C describe shortages. Option D may be true in some cases but is not the defining characteristic.
Thus, option B correctly defines a market surplus.


NEW QUESTION # 65
What is a characteristic of common law as compared to civil law?

Answer: A

Explanation:
InGlobal Economics for Managers,common lawsystems are distinguished by their heavy reliance onjudicial precedents, making option B correct. Under common law, judges interpret and apply the law by referring to outcomes of prior court cases. These precedents guide future rulings and allow the legal system to evolve incrementally over time.
This contrasts withcivil lawsystems, which emphasize comprehensive legal codes and statutes enacted by legislatures. In civil law countries, judges apply written laws more strictly and have less discretion to create legal interpretations based on prior cases.
For managers, the distinction matters because common law systems often provide greater flexibility and adaptability but may also involve higher legal uncertainty and litigation costs. Civil law systems offer clearer rules but less flexibility.
Thus, option B correctly identifies a defining characteristic of common law.


NEW QUESTION # 66
The marginal cost of producing a computer is $600, but the marginal revenue is $1,000. What is the best action for the respective firm?

Answer: A

Explanation:
According toGlobal Economics for Managers, firms shouldincrease production when marginal revenue (MR) exceeds marginal cost (MC), making option C correct.
In this case, MR = $1,000 and MC = $600. Producing one additional unit generates more revenue than cost, increasing profit by $400. Rational, profit-maximizing firms should continue expanding output as long as MR
> MC.
This decision rule applies across market structures, including monopoly, oligopoly, and perfect competition.
The firm should stop increasing production only when MR equals MC.
Options A, B, and D would cause the firm to forgo profitable opportunities.
Thus, option C is the correct managerial response.


NEW QUESTION # 67
Which good tends to have elastic demand?

Answer: B

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 # 68
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