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WGU Global-Economics-for-Managers Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Key Topics Across All Competencies | - Supply and Demand Shifts - Foreign Direct Investment (FDI) Impacts - International Trade Policies (Tariffs, Quotas) - Elastic vs. Inelastic Goods - Global Business Strategies and Porter's Framework - Currency Appreciation and Depreciation |
| Competency 2: Political and Economic Forces | - Market Economy vs. Command Economy - Property Rights and the Rule of Law |
| Competency 3: Economic Decision-Making by Firms and Customers | - Firm Behavior Under Different Market Structures (Perfect Competition, Monopoly, Oligopoly) - Consumer Behavior (Budget Constraint, Indifference Curves) |
| Competency 1: International Trade and Currency Exchange | - Impact of Interest Rates on Financial Flows and Exchange Rates - Introduction to International Trade Theories - Currency Exchange Rate Determination |
WGU Global Economics for Managers (C211, UZC2) Sample Questions:
What is opportunity cost?
- A. The lost potential from pursuing one activity at the expense of another, given the alternatives
- B. The marginal benefit of an additional unit
- C. The total cost of all inputs used in production
- D. The explicit monetary cost of an activity
Correct Answer: A 🗳️
Explanation: Only visible for RealVCE members. You can sign-up / login (it's free).
Which term best describes a market structure of limited competition in which the market is shared by a small number of sellers?
- A. Oligopoly
- B. Monopoly
- C. Perfect competition
- D. Monopolistic competition
Correct Answer: A 🗳️
Explanation: Only visible for RealVCE members. You can sign-up / login (it's free).
What is purchasing power parity (PPP)?
- A. The idea that a country ' s exchange rate is an indicator of socioeconomic well-being
- B. A theory suggesting that the price for identical products sold in different countries must be the same in the absence of trade barriers
- C. The gain from taking advantage of inefficient exchange rates
- D. The movement of investors in the same direction at the same time
Correct Answer: B 🗳️
Explanation: Only visible for RealVCE members. You can sign-up / login (it's free).
In an oligopoly with an initial agreement to maximize total profit, which statements might a firm motivated by self-interest likely make? (Choose THREE.)
- A. "If my fellow firms live up to the agreement, I am better off raising production."
- B. "I am better off reducing output below the agreed level."
- C. "Regardless of what my fellow firms do, I am better off raising production beyond the agreed-to level."
- D. "If my fellow firms fail to live up to the agreement and raise production, I am better off raising production myself."
- E. "I should always cooperate, regardless of outcomes."
Correct Answer: A,C,D 🗳️
Explanation: Only visible for RealVCE members. You can sign-up / login (it's free).
What is true about forward transactions?
- A. They convert one currency into another at one time with an agreement to revert it back at another time in the future.
- B. They allow traders to sell currency holdings at an exchange rate in the past.
- C. They allow participants to buy and sell currencies now for future delivery.
- D. They are the classic single-shot exchange of one currency for another.
Correct Answer: C 🗳️
Explanation: Only visible for RealVCE members. You can sign-up / login (it's free).
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