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| Section | Weight | Objectives |
|---|---|---|
| Foreign Direct Investment and Global Strategy | 20% | - Global Business Strategy
|
| International Trade Theory and Policy | 25% | - Classical and Modern Trade Theories
|
| Macroeconomics for Managers | 10% | - Economic Indicators and Policies
|
| Global Finance and Monetary Systems | 25% | - Balance of Payments and International Monetary System
|
| Foundations of Global Economics | 20% | - Views on Globalization
|
>> Minimum WGU Global-Economics-for-Managers Pass Score <<
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NEW QUESTION # 27
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?
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 # 28
A shopper purchases a shirt for $17 but was willing to pay $25. What does this indicate?
Answer: D
Explanation:
InGlobal Economics for Managers,consumer surplusis defined as the difference betweenwhat a consumer is willing to payfor a good andwhat the consumer actually pays, making option A correct.
In this example, the shopper was willing to pay $25 but paid only $17. The consumer surplus is therefore:
Consumer Surplus = Willingness to Pay # Price Paid
Consumer Surplus = $25 # $17 = $8
This $8 represents the net benefit the consumer gains from the transaction. Consumer surplus captures the idea that consumers often value goods more than the market price, and the difference contributes to their economic welfare.
Options B and C incorrectly refer to producer surplus, which depends on production costs rather than consumer willingness to pay. Option D incorrectly states that consumer surplus equals $25, which is the maximum willingness to pay, not the surplus.
Global Economics for Managersuses consumer surplus extensively to evaluate the effects of price changes, taxes, and trade policies on consumer welfare. Thus, option A is correct.
NEW QUESTION # 29
What are examples of variable costs? Choose two answers.
Answer: C,E
Explanation:
Variable costs change as output changes. Option A is correct because a tax charged on variable inputs increases as the firm uses more inputs to produce more output. Option E is also correct because the cost of parts used in individual devices rises directly with the number of devices produced. If the manufacturer produces more computers, it must buy more parts; if production falls, parts costs fall. The other choices are fixed costs because they generally do not vary directly with the quantity produced in the short run. A license fee, CEO salary, rent, and monthly internet service are normally paid regardless of whether output is high or low. Managers must separate fixed and variable costs to make production, pricing, shutdown, and break-even decisions.
NEW QUESTION # 30
What is true about tariffs?
Answer: D
Explanation:
InGlobal Economics for Managers, tariffs are recognized as a policy tool thatallows governments to raise revenue, making option C correct.
Tariffs generate revenue by taxing imported goods. While domestic producers may benefit and governments gain revenue, consumers lose due to higher prices and reduced choices. Tariffs also create deadweight loss, reducing overall economic efficiency.
Options A, B, and D contradict standard trade theory.
Therefore, option C is correct.
NEW QUESTION # 31
One view of globalization claims that human civilization has always had some type of globalization.
Which view is it?
Answer: B
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 # 32
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