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

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

1. In a monopoly, which statements are likely true? (Choose TWO.)

A) There are barriers to entry into the market
B) Entry is free in the long run
C) Marginal revenue equals price
D) Firms are price takers
E) One seller offers a unique good with no close substitutes

2. What does the Federal Reserve do to expand aggregate demand? (Choose TWO.)

A) Lower the interest rate
B) Increase the foreign exchange rate
C) Decrease the money supply
D) Increase the money supply
E) Raise mortgage rates
F) Reduce the quantity of reserves

3. Which company has a natural resource-seeking strategic goal?

A) A company searching for a location where there is an abundance of oil
B) A company searching for a location where labor costs are low
C) A company searching for a location with a large consumer market
D) A company searching for a location with advanced technology clusters

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

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

5. What is true about forward transactions?

A) They are the classic single-shot exchange of one currency for another.
B) They convert one currency into another at one time with an agreement to revert it back at another time in the future.
C) They allow traders to sell currency holdings at an exchange rate in the past.
D) They allow participants to buy and sell currencies now for future delivery.

Solutions: