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

Section	Weight	Objectives
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
Macroeconomics for Managers	10%	- Economic Indicators and Policies 1. Fiscal and monetary policy impacts 2. GDP, inflation, unemployment, business cycles
International Trade Theory and Policy	25%	- Classical and Modern Trade Theories 1. Heckscher-Ohlin, Product life-cycle, Strategic trade theory 2. Absolute advantage, Comparative advantage - Trade Policies and Barriers 1. Tariffs, quotas, subsidies, embargoes 2. Economic integration: EU, USMCA, ASEAN
Foreign Direct Investment and Global Strategy	20%	- Global Business Strategy 1. Porter's Diamond model 2. Strategic positions: Defender, Extender, Contender, Dodger - Foreign Direct Investment (FDI) 1. Theories of FDI, costs and benefits 2. Location advantages and entry modes
Foundations of Global Economics	20%	- Economic Systems and Institutions 1. Market, command, and mixed economies 2. Political, legal, and cultural frameworks - Views on Globalization 1. New view, Evolutionary view, Pendulum view 2. Drivers and consequences of globalization

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q68-Q73):

NEW QUESTION # 68
What are features shared by monopolies and perfect competition? (Choose TWO.)

A. In the long run, new firms can easily enter the market.
B. In the long run, it is nearly impossible for new firms to enter.
C. The structure does not produce the welfare-maximizing level of output.
D. Firms earn economic profits in the short run.
E. Price is greater than marginal cost.
F. Maximum profit occurs when marginal revenue equals marginal cost.

Answer: D,F

Explanation:
InGlobal Economics for Managers, monopolies and perfectly competitive firms share two important features:
profit maximization at MR = MCand the ability toearn economic profits in the short run, making options E and F correct.
Option E applies universally: all firms maximize profit wheremarginal revenue equals marginal cost, regardless of market structure. This decision rule guides output choices in both monopoly and perfect competition.
Option F is also correct because firms in both structurescan earn economic profits in the short run. In perfect competition, short-run profits attract new entrants, while monopolies may sustain profits longer due to entry barriers.
Options A and B distinguish the two structures. Option C applies only to monopoly. Option D applies only to monopoly, not perfect competition.
Thus, options E and F correctly identify shared features.

NEW QUESTION # 69
What is true about producer surplus?

A. It measures social welfare
B. It is used to measure the well-being of sellers
C. It equals total revenue
D. It measures the well-being of consumers

Answer: B

Explanation:
InGlobal Economics for Managers,producer surplusmeasures thewell-being of sellers, making option B correct.
Producer surplus is the difference between the price producers receive and the minimum price they are willing to accept. It reflects profits plus fixed costs and indicates how much sellers benefit from participating in a market.
Options A and D confuse producer surplus with consumer or total surplus. Option C is incorrect because producer surplus is not total revenue.
Therefore, option B is correct.

NEW QUESTION # 70
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 more than the increase in government spending.
B. Aggregate demand increases by more than the increase in government spending.
C. Aggregate demand decreases by less than the increase in government spending.
D. Aggregate demand increases by less than the increase in government spending.

Answer: B

Explanation:
InGlobal Economics for Managers, when themultiplier effect exceeds the crowding-out effect, increased government spending causesaggregate 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 # 71
One view of globalization claims that human civilization has always had some type of globalization.
Which view is it?

A. The long-run historical view
B. The technological convergence view
C. The modern institutional view
D. The short-run economic view

Answer: A

Explanation:
InGlobal Economics for Managers, thelong-run historical viewof globalization argues that globalization is not a recent phenomenon, but rather a process that has existed throughout human history. This view emphasizes that trade, migration, cultural exchange, and cross-border interactions have occurred for thousands of years, long before modern multinational enterprises or digital technologies emerged.
Under this perspective, early examples of globalization include ancient trade routes such as the Silk Road, maritime trade across the Mediterranean, and colonial-era exchanges of goods, capital, and labor. Although the scale, speed, and complexityof globalization have increased dramatically in recent decades, the underlying idea of cross-border integration is seen as historically continuous.
This view contrasts with more recent interpretations that define globalization as a post-World War II or late
20th-century phenomenon driven by multinational corporations, trade liberalization, and digital communication. The long-run historical view does not deny the importance of these modern forces but argues that they represent anintensification, not the origin, of globalization.
For managers, this perspective is important because it frames globalization as a persistent structural force rather than a temporary trend. Firms operating globally must recognize that international economic integration has deep roots and is likely to continue evolving rather than reversing permanently.
Therefore, option C correctly identifies the long-run historical view as the perspective that sees globalization as an enduring feature of human civilization.

NEW QUESTION # 72
The marginal cost of producing a computer is $600, but the marginal revenue is $1,000. What is the best action for the respective firm?

A. Increase production
B. Decrease production
C. Pause production
D. Exit the market

Answer: A

Explanation:
According toGlobal Economics for Managers, firms shouldincrease production when marginal revenue (MR) exceeds marginal cost (MC), making option C correct.
In this case, MR = $1,000 and MC = $600. Producing one additional unit generates more revenue than cost, increasing profit by $400. Rational, profit-maximizing firms should continue expanding output as long as MR
> MC.
This decision rule applies across market structures, including monopoly, oligopoly, and perfect competition.
The firm should stop increasing production only when MR equals MC.
Options A, B, and D would cause the firm to forgo profitable opportunities.
Thus, option C is the correct managerial response.

NEW QUESTION # 73
......

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