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

Section	Weight	Objectives
Foreign Direct Investment and Global Strategy	20%	- Foreign Direct Investment (FDI) 1. Theories of FDI, costs and benefits 2. Location advantages and entry modes - Global Business Strategy 1. Strategic positions: Defender, Extender, Contender, Dodger 2. Porter's Diamond model
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
International Trade Theory and Policy	25%	- Trade Policies and Barriers 1. Economic integration: EU, USMCA, ASEAN 2. Tariffs, quotas, subsidies, embargoes - Classical and Modern Trade Theories 1. Heckscher-Ohlin, Product life-cycle, Strategic trade theory 2. Absolute advantage, Comparative advantage
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
Macroeconomics for Managers	10%	- Economic Indicators and Policies 1. GDP, inflation, unemployment, business cycles 2. Fiscal and monetary policy impacts

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q43-Q48):

NEW QUESTION # 43
An import tariff is implemented on apples. What is the effect on domestic government revenue?

A. It decreases
B. It becomes negative
C. It increases
D. It remains unchanged

Answer: C

Explanation:
InGlobal Economics for Managers, animport tariffgeneratesgovernment revenue, making option C correct.
A tariff is a tax on imported goods. When apples are imported and subject to a tariff, the government collects revenue equal to the tariff rate multiplied by the quantity imported. Although the quantity of imports usually declines after a tariff is imposed, the government still earns revenue on remaining imports.
This revenue comes at the expense of consumers, who face higher prices, and contributes to deadweight loss.
However, from the government's perspective, tariff revenue increases.
Thus, option C is correct.

NEW QUESTION # 44
What is a characteristic of a market economy?

A. It is in place in most of the world's countries.
B. It emphasizes private ownership of all factors of production.
C. It leaves the planning of supply, demand, and pricing to the government.
D. It gives the government the primary authoritative role in the economy.

Answer: B

Explanation:
A market economy emphasizes private ownership of the factors of production and relies on decentralized decision making by consumers and firms. Option D is correct because private ownership is one of the defining features of market-based systems. In a market economy, prices are primarily determined by supply and demand rather than direct government planning. Firms decide what to produce based on profitability, and consumers decide what to buy based on preferences and income. Option B describes a command economy, where government has the primary authoritative role. Option C is also command-economy logic because supply, demand, and pricing are centrally planned. Option A is too broad and inaccurate because most real- world economies are mixed economies, not pure market economies.

NEW QUESTION # 45
Which scenario demonstrates a monopoly created by a resource?

A. A software company copyrights the code for new software.
B. A bridge is so infrequently used that it has a large fixed cost and negligible marginal cost.
C. An author copyrights a new book.
D. A new rare jewel is found, and only one mine in the world has it.

Answer: D

Explanation:
InGlobal Economics for Managers, aresource-based monopolyarises when a single firm controls aunique, scarce resourcethat cannot be easily replicated or accessed by competitors. Option D correctly illustrates this situation. When only one mine in the world possesses a rare jewel, the firm owning that mine has exclusive control over the supply of that resource, creating monopoly power.
This type of monopoly differs from legal or technological monopolies. The monopoly exists not because of government protection or intellectual property rights, but because ofnatural scarcity. Competitors cannot enter the market without access to the same resource, and alternative sources may be unavailable or prohibitively costly. As a result, the monopolist can restrict output and charge prices above marginal cost.
Option A describes anatural monopolybased on cost structure rather than resource ownership. Options B and C describelegal monopoliescreated by copyright protection, not resource monopolies.
Thus, option D correctly demonstrates a monopoly created by control over a unique resource.

NEW QUESTION # 46
What measures how the quantity demanded of one good responds to a change in the price of another good?

A. Price elasticity of demand
B. Cross-price elasticity of demand
C. Quantity elasticity of demand
D. Equilibrium elasticity of demand

Answer: B

Explanation:
Cross-price elasticity of demand measures how the quantity demanded of one good changes in response to a price change in another good. Option A is correct because this concept identifies whether goods are substitutes or complements. If cross-price elasticity is positive, the goods are substitutes; when the price of one rises, demand for the other increases. For example, if coffee becomes more expensive, demand for tea may rise. If cross-price elasticity is negative, the goods are complements; when the price of one rises, demand for the other falls. For example, if printers become more expensive, demand for printer cartridges may decline. Price elasticity of demand measures responsiveness to the good's own price, not another good's price.
The other options are not standard terms.

NEW QUESTION # 47
How does the Federal Reserve lower the federal funds rate?

A. By increasing taxes
B. By raising reserve requirements
C. By purchasing government bonds
D. By selling government bonds

Answer: C

Explanation:
InGlobal Economics for Managers, the Federal Reserve lowers thefederal funds ratebypurchasing government bonds, making option C correct.
Bond purchases increase bank reserves, easing liquidity conditions in the interbank market. With more reserves available, banks lend to each other at lower interest rates, reducing the federal funds rate.
Options A and B raise interest rates, while option D is fiscal policy.
Therefore, option C is correct.

NEW QUESTION # 48
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