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

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

1. Which situation illustrates the proposition that when formal constraints are unclear or fail, informal constraints play a larger role in reducing uncertainty and providing constancy to firms?

A) Choosing a headquarters location based on cost of living, airports, and tax credits
B) Firms relocating overseas due to a new domestic tax policy
C) A firm follows strict environmental practices despite lax local laws
D) Firms entering gray markets due to high taxes

2. What is the profit maximization condition for a monopoly?

A) When total revenue is maximized
B) When marginal cost is minimized
C) When price equals marginal cost
D) When marginal revenue equals marginal cost

3. A country has experienced a decrease in inflation. What is the effect on the country's currency exchange rate?

A) It has no effect
B) It becomes unstable
C) It depreciates
D) It increases

4. What is the most basic way for nonfinancial companies to adjust to fluctuations of the foreign exchange market?

A) Invoicing customers in the company's currency
B) Currency hedging
C) Forward transactions
D) Rate locks

5. What is a characteristic of a market economy?

A) Prices are fixed by the government.
B) Resources are allocated through quotas.
C) Factors of production are privately owned.
D) Central planning determines production decisions.

Solutions: