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

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

1. What is true about forward transactions?

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

2. Which methods does the Federal Reserve use to alter reserve quantities? Choose three answers.

A) Buying bonds
B) Selling stock shares
C) Raising the discount rate
D) Selling bonds
E) Raising income tax rates
F) Raising inflation

3. What is a key feature of an oligopoly?

A) Firms are price takers.
B) Products are always homogeneous.
C) Entry is free in the long run.
D) The market represents a prisoner's dilemma.

4. What is the Nash equilibrium?

A) An agreement among firms in a market over production and price
B) A particular situation between two entities that illustrates why cooperation is difficult to maintain even when it is mutually beneficial
C) A group of firms illegally acting in unison to improve profits or dominate a market
D) A situation in which economic actors interacting with one another each choose their best strategy from among all available strategies currently being used by said actors

5. What is purchasing power parity (PPP)?

A) A theory suggesting that the price for identical products sold in different countries must be the same in the absence of trade barriers
B) The gain from taking advantage of inefficient exchange rates
C) The movement of investors in the same direction at the same time
D) The idea that a country ' s exchange rate is an indicator of socioeconomic well-being

Solutions: