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

Section	Weight	Objectives
Foundations of Global Economics	20%	- Economic Systems and Institutions 1. Political, legal, and cultural frameworks 2. Market, command, and mixed economies - Views on Globalization 1. New view, Evolutionary view, Pendulum view 2. Drivers and consequences of globalization
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. Hedging and risk management 2. Exchange rate determination, currency regimes
Macroeconomics for Managers	10%	- Economic Indicators and Policies 1. GDP, inflation, unemployment, business cycles 2. Fiscal and monetary policy impacts
Foreign Direct Investment and Global Strategy	20%	- Global Business Strategy 1. Strategic positions: Defender, Extender, Contender, Dodger 2. Porter's Diamond model - Foreign Direct Investment (FDI) 1. Theories of FDI, costs and benefits 2. Location advantages and entry modes
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

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q132-Q137):

NEW QUESTION # 132
Which term best describes a market structure of limited competition in which the market is shared by a small number of sellers?

A. Oligopoly
B. Monopoly
C. Perfect competition
D. Monopolistic competition

Answer: A

Explanation:
InGlobal Economics for Managers, anoligopolyis defined as a market structure characterized bylimited competition in which a small number of sellers dominate the market, making option C the correct answer.
These firms collectively control a large share of total market output, and each firm's actions significantly influence the behavior and profitability of the others.
Oligopolistic markets are common in industries with high barriers to entry, such as automobiles, airlines, telecommunications, and energy. Barriers may include economies of scale, high capital requirements, technological advantages, or government regulation. Because only a few firms operate in the market, strategic decision making becomes critical.
Option A, monopoly, involves a single seller. Option B, monopolistic competition, includes many sellers offering differentiated products. Option D, perfect competition, involves many sellers with no market power.
Global Economics for Managersemphasizes that oligopolies are marked by strategic interaction, where firms must anticipate competitors' reactions when setting prices, output, advertising, or investment levels. This interdependence distinguishes oligopoly from other market structures.
Thus, option C accurately describes a market structure with limited competition and a small number of sellers.

NEW QUESTION # 133
Which company has a natural resource-seeking strategic goal?

A. A company searching for a location with a large consumer market
B. A company searching for a location where labor costs are low
C. A company searching for a location with advanced technology clusters
D. A company searching for a location where there is an abundance of oil

Answer: D

Explanation:
In Global Economics for Managers , a natural resource-seeking strategy refers to firms that engage in foreign direct investment to access specific natural resources that are unavailable or costly in their home country. Option C correctly reflects this motive.
Companies in industries such as oil, gas, mining, agriculture, and timber often locate operations where resources are naturally abundant. The primary objective is to secure reliable and cost-effective access to essential inputs for production.
Option A describes a cost-seeking strategy, option B a market-seeking strategy, and option D a strategic asset- seeking strategy.
Thus, option C correctly identifies a natural resource-seeking strategic goal.

NEW QUESTION # 134
Which effect does increased government spending have on aggregate demand if the multiplier effect is greater than the crowding-out effect?

A. Aggregate demand decreases by less than the increase in government spending.
B. Aggregate demand increases by more than the increase in government spending.
C. Aggregate demand decreases by more than the increase in government spending.
D. Aggregate demand increases by less than the increase in government spending.

Answer: B

Explanation:
In Global Economics for Managers , when the multiplier effect exceeds the crowding-out effect , increased government spending causes aggregate demand (AD) to rise by more than the initial increase in spending
, making option A correct.
The multiplier effect occurs because government spending generates income, which leads to further consumption. Crowding out occurs when government borrowing raises interest rates and reduces private investment. If the multiplier is stronger, the net effect is an amplified increase in AD.
Thus, option A is correct.

NEW QUESTION # 135
What is a tariff levied on imports that are selling below cost in order to unfairly drive domestic firms out of business?

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

Answer: D

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 # 136
What are examples of intellectual property? (Choose TWO.)

A. A patent
B. A trademark
C. A tariff
D. A subsidy

Answer: A,B

Explanation:
In Global Economics for Managers , intellectual property (IP) refers to legally protected creations of the mind. Patents and trademarks are 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 # 137
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