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Global-Economics-for-Managers Questions Answers - 100% Unparalleled Questions Pool

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q67-Q72):

NEW QUESTION # 67
What are examples of intellectual property? (Choose TWO.)

A. A trademark
B. A tariff
C. A subsidy
D. A patent

Answer: A,D

Explanation:
InGlobal Economics for Managers,intellectual property (IP)refers to legally protected creations of the mind.
Patentsandtrademarksare two major forms of IP, making options A and B correct.
Patents protect new inventions, processes, or technologies, granting exclusive rights to inventors for a limited time. Trademarks protect brand identifiers such as names and logos.
Subsidies and tariffs are government policies, not intellectual property protections.
Therefore, options A and B correctly identify examples of intellectual property.

NEW QUESTION # 68
Which statement about Federal Reserve lending to banks is true?

A. The discount rate is changed annually.
B. Banks set consumer interest rates at the discount rate.
C. Banks pay the discount rate when borrowing funds from the Fed.
D. Fed lending to banks follows an overall uptrend.

Answer: C

Explanation:
InGlobal Economics for Managers, banks that borrow directly from the Federal Reserve through the discount windowpay the discount rate, making option D correct. The discount rate is the interest rate the Fed charges banks for short-term loans.
Option A is incorrect because Fed lending fluctuates based on economic conditions. Option B is incorrect because the discount rate can be changed at any time. Option C is incorrect because consumer interest rates are market-determined, not set at the discount rate.
Thus, option D accurately describes Fed lending.

NEW QUESTION # 69
Which changes increase demand? (Choose TWO.)

A. An increase in the price of the good itself
B. A decrease in consumer income for a normal good
C. A decrease in the price of a complement
D. An increase in the price of a substitute

Answer: C,D

Explanation:
InGlobal Economics for Managers, demand for a good increases when factors other than its own price change in a favorable direction. Two such changes arean increase in the price of a substituteanda decrease in the price of a complement, making options A and B correct.
When the price of asubstituterises, consumers switch toward the relatively cheaper alternative, increasing demand for the good in question. For example, if the price of coffee increases, demand for tea may rise.
When the price of acomplementfalls, consumers are more likely to purchase both goods together, increasing demand. For instance, a decrease in the price of printers raises demand for printer ink.
Options C and D reduce demand rather than increase it.
Thus, A and B correctly identify changes that increase demand.

NEW QUESTION # 70
What is one of the two major exchange rate policies?

A. Floating rate
B. Matched rate
C. Fiscal rate
D. Discount rate

Answer: A

Explanation:
InGlobal Economics for Managers, one of the two major exchange rate policies is thefloating rate system, making option B the correct answer. Exchange rate policy determines how a country manages the value of its currency relative to others, which has significant implications for trade, investment, and macroeconomic stability.
Under a floating exchange rate system, currency values are determined bymarket forces of supply and demandin foreign exchange markets. Factors such as interest rates, inflation expectations, trade balances, and capital flows influence exchange rate movements. Governments and central banks do not commit to maintaining a specific exchange rate level, although they may occasionally intervene to reduce excessive volatility.
The alternative major policy is afixed (or pegged) exchange rate system, where the government commits to maintaining the currency at a specific value relative to another currency or basket of currencies. Option A, fiscal rate, refers to government taxation and spending policy. Option C, matched rate, is not a recognized exchange rate regime. Option D, discount rate, is a monetary policy tool used by central banks, not an exchange rate policy.
Global Economics for Managersemphasizes that floating exchange rates provide greater monetary policy independence but introduce exchange rate uncertainty, which managers must manage through hedging and pricing strategies. Therefore, option B correctly identifies a major exchange rate policy.

NEW QUESTION # 71
A country has experienced a decrease in inflation. What is the effect on the country's currency exchange rate?

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

Answer: B

Explanation:
In Global Economics for Managers, a decrease in inflation generally leads to an appreciation of a country's currency, making option C correct.
Lower inflation increases the purchasing power of a country's currency relative to others. As domestic prices rise more slowly than foreign prices, exports become more competitive, and demand for the currency increases. Under purchasing power parity, lower inflation is associated with currency appreciation.
Options A, B, and D contradict established exchange rate theory.
Therefore, option C is correct.

NEW QUESTION # 72
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