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

Section	Objectives
Topic 1: Key Topics Across All Competencies	- Elastic vs. Inelastic Goods - Currency Appreciation and Depreciation - Foreign Direct Investment (FDI) Impacts - Global Business Strategies and Porter's Framework - Supply and Demand Shifts - International Trade Policies (Tariffs, Quotas)
Topic 2: Competency 2: Political and Economic Forces	- Property Rights and the Rule of Law - Market Economy vs. Command Economy
Topic 3: Competency 1: International Trade and Currency Exchange	- Impact of Interest Rates on Financial Flows and Exchange Rates - Introduction to International Trade Theories - Currency Exchange Rate Determination
Topic 4: 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 (Q105-Q110):

NEW QUESTION # 105
What is a tariff levied on imports that are selling below cost in order to unfairly drive domestic firms out of business?

A. Antidumping duty
B. Factor endowment
C. Deadweight cost
D. Opportunity cost

Answer: A

Explanation:
An antidumping duty is a tariff imposed on imported goods that are sold at unfairly low prices, often below cost or below the price charged in the exporter's home market. Dumping can harm domestic producers because foreign firms may temporarily underprice goods to gain market share or drive competitors out of business. Governments use antidumping duties to offset this unfair pricing and restore competitive conditions.
Option C is correct because it directly identifies the trade remedy used against below-cost imports. Factor endowment refers to a country's available resources, not a tariff. Deadweight cost is the net welfare loss caused by tariffs or other distortions. Opportunity cost is the value of the next best alternative forgone when a choice is made.

NEW QUESTION # 106
What is the Nash equilibrium?

A. A particular situation between two entities that illustrates why cooperation is difficult to maintain even when it is mutually beneficial
B. An agreement among firms in a market over production and price
C. A situation in which economic actors interacting with one another each choose their best strategy from among all available strategies currently being used by said actors
D. A group of firms illegally acting in unison to improve profits or dominate a market

Answer: C

Explanation:
A Nash equilibrium occurs when each participant in a strategic interaction chooses the best available strategy given the strategies chosen by others. Option C is correct because no actor has an incentive to change its strategy unilaterally once the equilibrium is reached. This concept is central to game theory and is especially useful in oligopoly analysis, where firms must consider how rivals will respond to pricing, output, advertising, or product decisions. Option A describes the prisoner's dilemma more specifically, which can produce a Nash equilibrium but is not the definition itself. Option B describes collusion or cartel behavior. Option D describes illegal coordinated action by firms. Managers use Nash equilibrium logic to anticipate competitor behavior and understand why mutually beneficial cooperation can be unstable.

NEW QUESTION # 107
Which methods does the Federal Reserve use to alter reserve quantities? Choose three answers.

A. Selling stock shares
B. Raising income tax rates
C. Buying bonds
D. Raising the discount rate
E. Raising inflation
F. Selling bonds

Answer: C,D,F

Explanation:
The Federal Reserve alters bank reserve quantities through monetary policy tools such as changing the discount rate and conducting open market operations. Option A is correct because raising the discount rate makes borrowing from the Fed more expensive, which can reduce bank reserves and lending. Option B is correct because buying bonds injects reserves into the banking system; the Fed pays for bonds, increasing bank reserves. Option E is correct because selling bonds removes reserves from the banking system as banks and investors pay the Fed. Raising inflation is not a direct Fed operating tool. Selling stock shares is not how the Fed manages reserves. Raising income tax rates is fiscal policy controlled by government taxation authorities, not the Federal Reserve's reserve-management tool.

NEW QUESTION # 108
Which statement about the GDP deflator is true?

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

Answer: A

NEW QUESTION # 109
What is one characteristic of a market shortage?

A. Price is greater than the equilibrium price.
B. Quantity supplied is less than equilibrium quantity.
C. Quantity demanded is less than equilibrium quantity.
D. There is downward pressure on price.

Answer: B

Explanation:
InGlobal Economics for Managers, amarket shortageoccurs whenquantity demanded exceeds quantity suppliedat the current price. A defining characteristic of a shortage is thatquantity supplied is less than the equilibrium quantity, making option D correct.
Shortages typically arise when prices are set below equilibrium, such as under price controls. At these lower prices, consumers demand more, while producers supply less, creating excess demand.
Option A describes a surplus condition. Option B contradicts the definition of shortage. Option C is incorrect because shortages createupward, not downward, pressure on prices.
Thus, option D correctly identifies a characteristic of a market shortage.

NEW QUESTION # 110
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