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

Section	Objectives
Topic 1: Global Economics	- Exchange rates and currency systems - Global economic institutions and trade policy - International trade and comparative advantage
Topic 2: Microeconomics for Managers	- Market structures and competition - Supply and demand analysis - Elasticity and pricing decisions
Topic 3: Macroeconomic Environment	- Fiscal and monetary policy - GDP, inflation, and unemployment
Topic 4: Managerial Economic Decision-Making	- Cost-benefit analysis in business contexts - Risk and uncertainty in global markets
Topic 5: Foundations of Economics	- Scarcity, opportunity cost, and economic reasoning - Market systems and economic models

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Global-Economics-for-Managers Test Torrent and Global-Economics-for-Managers Preparation Materials: WGU Global Economics for Managers (C211, UZC2) - Global-Economics-for-Managers Practice Test

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q56-Q61):

NEW QUESTION # 56
What is an example of goods that tend to have negative cross-price elasticities?

A. Luxury goods
B. Inferior goods
C. Substitutes
D. Complements

Answer: D

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 # 57
What is the definition of marginal cost?

A. The increase in cost that arises from producing an additional unit of output
B. The fixed cost of production
C. The opportunity cost of capital
D. The total cost divided by total output

Answer: A

Explanation:
InGlobal Economics for Managers,marginal cost (MC)is defined asthe increase in total cost that arises from producing one additional unit of output, making option B correct. Marginal cost plays a central role in production and pricing decisions because it reflects the incremental cost of expanding output.
Marginal cost typically includes additional labor, materials, and variable inputs required for one more unit.
Fixed costs do not affect marginal cost in the short run because they do not change with output. As production increases, marginal cost may initially decline due to specialization and efficiency gains, but it often rises later because of diminishing marginal returns.
Managers rely on marginal cost to determine optimal output levels. Producing beyond the point where marginal cost exceeds marginal revenue reduces profit. Therefore, understanding marginal cost is essential for profit maximization, cost control, and operational planning.
Thus, option B correctly defines marginal cost.

NEW QUESTION # 58
What happens when the Federal Reserve increases the money supply?

A. The aggregate supply curve shifts to the right
B. The aggregate demand curve shifts to the left
C. The aggregate demand curve shifts to the right
D. The aggregate supply curve shifts to the left

Answer: C

NEW QUESTION # 59
What is the Nash equilibrium?

A. A group of firms illegally acting in unison to improve profits or dominate a market
B. A particular situation between two entities that illustrates why cooperation is difficult to maintain even when it is mutually beneficial
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. An agreement among firms in a market over production and price

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 # 60
What is a characteristic of a market economy?

A. Factors of production are government-owned or state-owned.
B. It is defined by a government taking the authoritative role in the economy.
C. The government takes a hands-off approach known as laissez-faire.
D. It found a near ideal in China and the former Soviet Union during the heydays of communism.

Answer: C

Explanation:
A market economy is associated with limited government intervention and reliance on private decision making, often described as a laissez-faire approach. Option B is correct because laissez-faire means the government largely allows market forces to guide production, pricing, investment, and consumption. In a pure market system, private individuals and firms own resources and respond to price signals. Option A is incorrect because China under communism and the former Soviet Union are classic examples of command economies, not market economies. Option C is also a command-economy characteristic because it gives government the authoritative role. Option D is wrong for the same reason: state ownership of production factors belongs to command or socialist systems. Market economies emphasize private ownership and voluntary exchange.

NEW QUESTION # 61
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