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

SectionObjectives
Key Topics Across All Competencies- Global Business Strategies and Porter's Framework
- Foreign Direct Investment (FDI) Impacts
- International Trade Policies (Tariffs, Quotas)
- Elastic vs. Inelastic Goods
- Supply and Demand Shifts
- Currency Appreciation and Depreciation
Competency 1: International Trade and Currency Exchange- Introduction to International Trade Theories
- Impact of Interest Rates on Financial Flows and Exchange Rates
- Currency Exchange Rate Determination
Competency 2: Political and Economic Forces- Property Rights and the Rule of Law
- Market Economy vs. Command Economy
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 (Q107-Q112):

NEW QUESTION # 107
A shopper purchases a shirt for $17 but was willing to pay $25. What does this indicate?

Answer: C

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 # 108
What are features shared by monopolies and perfect competition? (Choose TWO.)

Answer: C,D

Explanation:
InGlobal Economics for Managers, monopolies and perfectly competitive firms share two important features:
profit maximization at MR = MCand the ability toearn economic profits in the short run, making options E and F correct.
Option E applies universally: all firms maximize profit wheremarginal revenue equals marginal cost, regardless of market structure. This decision rule guides output choices in both monopoly and perfect competition.
Option F is also correct because firms in both structurescan earn economic profits in the short run. In perfect competition, short-run profits attract new entrants, while monopolies may sustain profits longer due to entry barriers.
Options A and B distinguish the two structures. Option C applies only to monopoly. Option D applies only to monopoly, not perfect competition.
Thus, options E and F correctly identify shared features.


NEW QUESTION # 109
The formula "fixed costs (FC) + variable costs (VC)" represents which quantity?

Answer: D

Explanation:
InGlobal Economics for Managers,total cost (TC)is defined as the sum offixed costs (FC)andvariable costs (VC), making option C correct. The formula is:
TC = FC + VC
Fixed costs do not change with output in the short run, while variable costs vary with production. Total cost captures the full cost of producing a given level of output.
Average cost divides total cost by quantity, marginal cost measures the cost of one additional unit, and implicit cost reflects opportunity costs.
Therefore, option C correctly identifies total cost.


NEW QUESTION # 110
A country has experienced a decrease in inflation. What is the effect on the country's currency exchange rate?

Answer: C


NEW QUESTION # 111
What are characteristics of a market economy? (Choose TWO.)

Answer: D,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 # 112
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