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

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

1. When demand decreases and supply stays the same, what happens to the equilibrium point of price and quantity? (Choose TWO.)

A) Quantity increases
B) Quantity decreases
C) Price decreases
D) Price increases

2. When producing a piece of luggage, the marginal cost is $92 and the marginal revenue is $81. What is the best action for the firm?

A) Restart production
B) Increase production
C) Enter the market
D) Decrease production

3. What is true about producer surplus?

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

4. Managers and firms rationally pursue their interests and make choices within institutional constraints. This is one of the two core propositions underpinning an institution-based view of global business. Which situation illustrates this proposition?

A) Government corruption is rampant in a particular country, leading to a high cost of doing business.However, some smaller companies have figured out how to legally evade the most fraudulent abuses, and for them the cost of doing business becomes much cheaper. For this reason, the companies stay and have a lucrative decade.
B) When a company opens a new production facility, company leaders find out that the laws of that country may allow it to skip several important safety steps. In doing so, the cost of production goes down, but there is a risk to the surrounding environment. The leaders decide not to skip these safety steps out of a deep concern and commitment to environmental protection.
C) Several businesses relocate overseas because of a new domestic tax policy that will increase their tax liability by 15%.
D) Two failing banks are pursuing the option of being acquired by another institution. One bank is able to leverage political relationships to result in a successful acquisition. The other bank pursues no such political solution and eventually files for bankruptcy.

5. What are characteristics of a market economy? (Choose TWO.)

A) It is characterized by the "invisible hand" of market forces.
B) Supply, demand, and pricing are planned by the government.
C) It was first noted by Adam Smith in The Wealth of Nations in 1776.
D) It is defined by a government taking the authoritative role in the economy.
E) It found a near ideal in China and the former Soviet Union during communism.
F) Factors of production are government-owned or state-owned.

Solutions: