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| Section | Weight | Objectives |
|---|
| Macroeconomics for Managers | 10% | - Economic Indicators and Policies
- 1. Fiscal and monetary policy impacts
- 2. GDP, inflation, unemployment, business cycles
|
| Global Finance and Monetary Systems | 25% | - Foreign Exchange Markets
- 1. Exchange rate determination, currency regimes
- 2. Hedging and risk management
- Balance of Payments and International Monetary System
- 1. Current account, capital account, official reserves
- 2. Fixed vs floating exchange rates, IMF, World Bank
|
| 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. Political, legal, and cultural frameworks
- 2. Market, command, and mixed economies
|
| 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. Heckscher-Ohlin, Product life-cycle, Strategic trade theory
- 2. Absolute advantage, Comparative advantage
|
| Foreign Direct Investment and Global Strategy | 20% | - Global Business Strategy
- 1. Porter's Diamond model
- 2. Strategic positions: Defender, Extender, Contender, Dodger
- Foreign Direct Investment (FDI)
- 1. Location advantages and entry modes
- 2. Theories of FDI, costs and benefits
|
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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q132-Q137):
NEW QUESTION # 132
What is an example of goods that tend to have negative cross-price elasticities?
- A. Substitutes
- B. Luxury goods
- C. Complements
- D. Inferior goods
Answer: C
Explanation:
InGlobal Economics for Managers,complementary goodshavenegative cross-price elasticity, making option C correct.
When the price of one good rises, demand for its complement falls. Examples include cars and gasoline or printers and ink.
Substitutes have positive cross-price elasticity. Inferior and luxury goods relate to income elasticity, not cross- price elasticity.
Thus, option C is correct.
NEW QUESTION # 133
Which characteristics are attributed to a democracy? (Choose THREE.)
- A. It prizes freedom of expression and organization.
- B. It prohibits private ownership.
- C. It concentrates power in a single ruling party.
- D. It contains political risk that is lower than in other political systems.
- E. It extends the right to organize economically to domestic and foreign firms.
Answer: A,D,E
Explanation:
InGlobal Economics for Managers, democracies are characterized bycivil liberties, economic freedoms, and relatively lower political risk, making options A, C, and D correct.
Democracies protect freedom of expression and organization, allow domestic and foreign firms to operate, and provide stable institutional environments with predictable rules.
Options B and E describe authoritarian systems, not democracies.
Thus, A, C, and D correctly describe democratic systems.
NEW QUESTION # 134
What is true about gross domestic product (GDP)?
- A. It places heavier weight on intangible services than tangible goods.
- B. It includes the income of citizens working abroad.
- C. Its year-to-year percentage change represents the inflation rate.
- D. It is thought to be the single best measure of a society's economic well-being.
Answer: D
Explanation:
InGlobal Economics for Managers,gross domestic product (GDP)is widely regarded asthe single best available measure of a society's economic well-being, making option A correct. GDP measures the total market value of all final goods and services produced within a country's borders during a given period.
Although GDP has limitations-it does not account for income distribution, environmental degradation, or non-market activities-it remains the most comprehensive and consistent indicator of economic performance across countries and over time.
Option B is incorrect because inflation is measured by price indices such as the GDP deflator or the consumer price index (CPI), not by GDP growth. Option C is incorrect because GDP values goods and services at market prices without weighting one more heavily than the other. Option D is incorrect because GDP excludes income earned by citizens working abroad; that income is included in gross national income (GNI), not GDP.
Global Economics for Managersemphasizes that GDP is particularly useful for comparing economic output and living standards internationally, especially when adjusted for purchasing power parity.
Thus, option A correctly describes GDP.
NEW QUESTION # 135
What are examples of intellectual property? (Choose TWO.)
- A. A tariff
- B. A subsidy
- C. A trademark
- D. A patent
Answer: C,D
Explanation:
InGlobal Economics for Managers,intellectual property (IP)refers to legally protected creations of the mind.
Patentsandtrademarksare two major forms of IP, making options A and B correct.
Patents protect new inventions, processes, or technologies, granting exclusive rights to inventors for a limited time. Trademarks protect brand identifiers such as names and logos.
Subsidies and tariffs are government policies, not intellectual property protections.
Therefore, options A and B correctly identify examples of intellectual property.
NEW QUESTION # 136
What are features shared by monopolies and perfect competition? (Choose TWO.)
- A. Maximum profit occurs when marginal revenue equals marginal cost.
- B. In the long run, it is nearly impossible for new firms to enter.
- C. The structure does not produce the welfare-maximizing level of output.
- D. Price is greater than marginal cost.
- E. In the long run, new firms can easily enter the market.
- F. Firms earn economic profits in the short run.
Answer: A,F
Explanation:
In Global Economics for Managers , monopolies and perfectly competitive firms share two important features: profit maximization at MR = MC and the ability to earn economic profits in the short run , making options E and F correct.
Option E applies universally: all firms maximize profit where marginal 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 structures can 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 # 137
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