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

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

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

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

2. Direct exports have which advantage?

A) Lower transportation costs
B) Full control over foreign distribution
C) Capitalization of economies of scale in production in the home country
D) Elimination of exchange rate risk

3. When the Federal Reserve decreases the money supply, what is the result?

A) The quantity of goods and services demanded for one specific price increases.
B) The aggregate demand for imports increases.
C) The efficiency of market corrections is reduced.
D) The quantity of goods and services demanded for any given price decreases.

4. If the demand for a good is inelastic, what is true?

A) Quantity demanded responds substantially to price changes
B) Price and total revenue move in opposite directions
C) Consumers are highly sensitive to price changes
D) Quantity demanded responds only slightly to price changes

5. What happens when the Federal Reserve increases the money supply?

A) The aggregate supply curve shifts to the left
B) The aggregate demand curve shifts to the right
C) The aggregate demand curve shifts to the left
D) The aggregate supply curve shifts to the right

Solutions: