Free PDF Quiz Valid Global-Economics-for-Managers - New WGU Global Economics for Managers (C211, UZC2) Test Notes
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| Section | Weight | Objectives |
|---|
| 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
|
| Foreign Direct Investment and Global Strategy | 20% | - Foreign Direct Investment (FDI)
- 1. Location advantages and entry modes
- 2. Theories of FDI, costs and benefits
- Global Business Strategy
- 1. Porter's Diamond model
- 2. Strategic positions: Defender, Extender, Contender, Dodger
|
| International Trade Theory and Policy | 25% | - Classical and Modern Trade Theories
- 1. Absolute advantage, Comparative advantage
- 2. Heckscher-Ohlin, Product life-cycle, Strategic trade theory
- Trade Policies and Barriers
- 1. Economic integration: EU, USMCA, ASEAN
- 2. Tariffs, quotas, subsidies, embargoes
|
| 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% | - Balance of Payments and International Monetary System
- 1. Fixed vs floating exchange rates, IMF, World Bank
- 2. Current account, capital account, official reserves
- Foreign Exchange Markets
- 1. Exchange rate determination, currency regimes
- 2. Hedging and risk management
|
>> New Global-Economics-for-Managers Test Notes <<
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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q22-Q27):
NEW QUESTION # 22
What happens when the Federal Reserve increases the money supply?
- A. The aggregate demand curve shifts to the right
- B. The aggregate supply curve shifts to the left
- C. The aggregate demand curve shifts to the left
- D. The aggregate supply curve shifts to the right
Answer: A
NEW QUESTION # 23
Which methods does the Federal Reserve use to alter reserve quantities? Choose three answers.
- A. Selling bonds
- B. Raising inflation
- C. Raising income tax rates
- D. Raising the discount rate
- E. Selling stock shares
- F. Buying bonds
Answer: A,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 # 24
What is one characteristic of a market surplus?
- A. There is upward pressure on price
- B. Quantity supplied exceeds quantity demanded
- C. Quantity demanded exceeds quantity supplied
- D. Price is below equilibrium
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 # 25
What does the Federal Reserve do to expand aggregate demand? (Choose TWO.)
- A. Decrease the money supply
- B. Reduce the quantity of reserves
- C. Lower the interest rate
- D. Increase the money supply
- E. Increase the foreign exchange rate
- F. Raise mortgage rates
Answer: C,D
Explanation:
InGlobal Economics for Managers, the Federal Reserve expands aggregate demand byincreasing the money supplyandlowering interest rates, making options B and C correct.
Increasing the money supply provides banks with more reserves, encouraging lending. Lower interest rates stimulate borrowing by households and firms, increasing consumption and investment. Both channels raise aggregate demand.
The remaining options contract demand rather than expand it. Therefore, B and C are correct.
NEW QUESTION # 26
What are examples of intellectual property? (Choose TWO.)
- A. A patent
- B. A tariff
- C. A trademark
- D. A subsidy
Answer: A,C
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 # 27
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