WGU Valid Global-Economics-for-Managers Exam Labs: WGU Global Economics for Managers (C211, UZC2) - Itcertking Useful Tips & Questions for you

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

SectionWeightObjectives
Topic 1: Macroeconomics for Managers10%- Economic Indicators and Policies
  • 1. GDP, inflation, unemployment, business cycles
  • 2. Fiscal and monetary policy impacts
Topic 2: Foundations of Global Economics20%- Economic Systems and Institutions
  • 1. Political, legal, and cultural frameworks
  • 2. Market, command, and mixed economies
- Views on Globalization
  • 1. Drivers and consequences of globalization
  • 2. New view, Evolutionary view, Pendulum view
Topic 3: International Trade Theory and Policy25%- Trade Policies and Barriers
  • 1. Tariffs, quotas, subsidies, embargoes
  • 2. Economic integration: EU, USMCA, ASEAN
- Classical and Modern Trade Theories
  • 1. Absolute advantage, Comparative advantage
  • 2. Heckscher-Ohlin, Product life-cycle, Strategic trade theory
Topic 4: Foreign Direct Investment and Global Strategy20%- 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
Topic 5: Global Finance and Monetary Systems25%- Balance of Payments and International Monetary System
  • 1. Current account, capital account, official reserves
  • 2. Fixed vs floating exchange rates, IMF, World Bank
- Foreign Exchange Markets
  • 1. Exchange rate determination, currency regimes
  • 2. Hedging and risk management

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q87-Q92):

NEW QUESTION # 87
When there is an expectation of lower income in the future, what is the effect on the demand curve for a normal good?

Answer: D

Explanation:
InGlobal Economics for Managers, demand for anormal goodincreases with income and decreases when income falls. If consumers expectlower future income, demand for normal goods decreases, causing the demand curve to shift left, making option A correct.
A leftward shift indicates that at every price, consumers are willing and able to purchase less of the good.
Expectations about future income influence present consumption decisions, especially for durable and discretionary goods.
Options C and D incorrectly describe movement along a demand curve rather than a shift. Option B would apply if income were expected to rise.
Therefore, option A is correct.


NEW QUESTION # 88
What is one characteristic of a market shortage?

Answer: A

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 # 89
What is one of the three primary types of foreign exchange transactions?

Answer: C

Explanation:
In Global Economics for Managers, spot transactions are one of the three primary types of foreign exchange transactions, making option B correct. Spot transactions involve the immediate exchange of currencies, typically settled within two business days.
The three main foreign exchange transactions are:
Spot transactions
Forward transactions
Swap transactions
Spot transactions form the foundation of currency trading and are widely used for international trade payments and short-term currency needs.
Options C and D describe strategies rather than transaction types.
Thus, option B is correct.


NEW QUESTION # 90
Direct exports have which advantage?

Answer: C

Explanation:
InGlobal Economics for Managers,direct exportingallows firms tocapitalize on economies of scale in production in the home country, making option B correct.
By concentrating production domestically, firms can achieve lower average costs, maintain quality control, and leverage existing facilities and expertise. Direct exporting avoids the fixed costs of establishing foreign production facilities.
Options A, C, and D are incorrect because exporting typically involves transportation costs, limited distribution control, and exposure to exchange rate risk.
Thus, option B correctly identifies a key advantage of direct exporting.


NEW QUESTION # 91
Barriers to entry help to create monopolies. What is a common type of barrier?

Answer: A

Explanation:
Economies of scale are a common barrier to entry that can help create monopoly power. Option D is correct because when average costs decline as output increases, a large established firm may produce at a lower per- unit cost than potential entrants. New firms entering at small scale may be unable to match the incumbent's cost advantage, making entry unattractive or impossible. This is especially important in industries with high fixed costs, such as utilities, railways, telecommunications infrastructure, and large-scale manufacturing.
Option A may reduce competition, but it is not the standard structural barrier described here. Elastic demand curves do not block entry. Progressive tax structures are tax systems, not typical monopoly barriers.
Economies of scale are one of the classic reasons monopolies can persist.


NEW QUESTION # 92
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