1|Page
WGU C211 - GLOBAL ECONOMICS FOR
MANAGERS |ACTUAL QUESTIONS AND
VERIFIED ANSWERS 2026
How do civil, common and theocratic laws compare? - correct-answer - Relative
to civil law, common law has more flexibility because judges have to resolve
specific disputes based on their interpretation of the law. Civil law has less
flexibility because judges only have the power to apply the law.
Property right - correct-answer - The legal rights to use an economic resource
and to derive income and benefits from it. Can be used as collateral for starting a
firm; not as common in developing countries, therefore hindering economic
growth.
,2|Page
Intellectual property right - correct-answer - Rights associated with the
ownership. They primarily include rights associated with patents, copyrights, and
trademarks.
Market economy - correct-answer - One that is characterized by the "invisible
hand" of market forces-all factors of production should be privately owned.
Command economy - correct-answer - One that is defined by a government
taking all factors of production to be government-owned or state-owned, and all
supply, demand, and pricing are planned by the government.
Mixed economy - correct-answer - One has elements of both a market economy
and a command economy. It boils down to the relative distribution of market
forces versus command forces.
,3|Page
Indifference curve - correct-answer - A curve that shows consumption bundles
that give the consumer the same level of satisfaction (i.e. combinations of pizza
and Pepsi with which the consumer is equally satisfied.)
Four properties of an indifference curve - correct-answer - (1) Higher indifference
curves are preferred to lower ones. People usually prefer to consume more goods
rather than less.
(2) Indifference curves are downward sloping. The slope of an indifference curve
reflects the rate at which the consumer is willing to substitute one good for the
other.
(3) Indifference curves do not cross.
(4) Indifference curves are bowed inward. The slope of an indifference curve is
the marginal rate of substitution—the rate at which the consumer is willing to
trade off one good for the other.
, 4|Page
Marginal rate of substitution. - correct-answer - The rate at which the consumer
is willing to trade off one good for the other (i.e. how much Pepsi the consumer
requires to be compensated for a one-unit reduction in pizza consumption)
Budget constraint - correct-answer - The consumption bundles that the
consumer can afford.
How might a budget constraint be impacted by an increase in income? - correct-
answer - Additional bundles could be consumed with an increase in income.
Graphical elements needed to determine a consumer's optimal point of
consumption - correct-answer - Indifference curve and budget constraint.
How is a consumer's optimal point of consumption determined precisely? What is
the condition that must be met? - correct-answer - The point at which this
WGU C211 - GLOBAL ECONOMICS FOR
MANAGERS |ACTUAL QUESTIONS AND
VERIFIED ANSWERS 2026
How do civil, common and theocratic laws compare? - correct-answer - Relative
to civil law, common law has more flexibility because judges have to resolve
specific disputes based on their interpretation of the law. Civil law has less
flexibility because judges only have the power to apply the law.
Property right - correct-answer - The legal rights to use an economic resource
and to derive income and benefits from it. Can be used as collateral for starting a
firm; not as common in developing countries, therefore hindering economic
growth.
,2|Page
Intellectual property right - correct-answer - Rights associated with the
ownership. They primarily include rights associated with patents, copyrights, and
trademarks.
Market economy - correct-answer - One that is characterized by the "invisible
hand" of market forces-all factors of production should be privately owned.
Command economy - correct-answer - One that is defined by a government
taking all factors of production to be government-owned or state-owned, and all
supply, demand, and pricing are planned by the government.
Mixed economy - correct-answer - One has elements of both a market economy
and a command economy. It boils down to the relative distribution of market
forces versus command forces.
,3|Page
Indifference curve - correct-answer - A curve that shows consumption bundles
that give the consumer the same level of satisfaction (i.e. combinations of pizza
and Pepsi with which the consumer is equally satisfied.)
Four properties of an indifference curve - correct-answer - (1) Higher indifference
curves are preferred to lower ones. People usually prefer to consume more goods
rather than less.
(2) Indifference curves are downward sloping. The slope of an indifference curve
reflects the rate at which the consumer is willing to substitute one good for the
other.
(3) Indifference curves do not cross.
(4) Indifference curves are bowed inward. The slope of an indifference curve is
the marginal rate of substitution—the rate at which the consumer is willing to
trade off one good for the other.
, 4|Page
Marginal rate of substitution. - correct-answer - The rate at which the consumer
is willing to trade off one good for the other (i.e. how much Pepsi the consumer
requires to be compensated for a one-unit reduction in pizza consumption)
Budget constraint - correct-answer - The consumption bundles that the
consumer can afford.
How might a budget constraint be impacted by an increase in income? - correct-
answer - Additional bundles could be consumed with an increase in income.
Graphical elements needed to determine a consumer's optimal point of
consumption - correct-answer - Indifference curve and budget constraint.
How is a consumer's optimal point of consumption determined precisely? What is
the condition that must be met? - correct-answer - The point at which this
