WGU C201 Business Acumen Study Guide
Overview UPDATED ACTUAL Exam
Questions and CORRECT Answers
Microeconomics - CORRECT ANSWER Microeconomics studies individual consumers,
firms, and industries.
Macroeconomics - CORRECT ANSWER Macroeconomics focuses on the economy as a
whole.
Demand curve - CORRECT ANSWER Demand curve slopes down—lower prices = more
demand.
Supply curve - CORRECT ANSWER Supply curve slopes up—higher prices = more supply.
Factors of production - CORRECT ANSWER Land, labor, capital, and entrepreneurship
affect production levels and efficiency.
Pure competition - CORRECT ANSWER Pure competition offers identical products.
Monopolistic competition - CORRECT ANSWER Monopolistic competition offers
differentiated products.
Mixed economy - CORRECT ANSWER The U.S. has a mixed economy with a capitalist
foundation.
Privatization - CORRECT ANSWER Transferring ownership from the public to the private
sector.
,Business cycle - CORRECT ANSWER Expansion, peak, contraction, trough.
Measures of economic health - CORRECT ANSWER GDP, unemployment rate, inflation,
consumer confidence.
Expansionary monetary policy - CORRECT ANSWER Expansionary increases money
supply.
Restrictive monetary policy - CORRECT ANSWER Restrictive decreases money supply.
Sources of government funds - CORRECT ANSWER Taxes, borrowing, and fees/fines.
Balanced budget - CORRECT ANSWER No. It prevents further debt but doesn't reduce
existing debt.
Economic interdependence - CORRECT ANSWER Global trade, technology, and investment
create economic interdependence.
Global expansion benefits - CORRECT ANSWER Access to new markets and lower
production costs.
Management - CORRECT ANSWER Coordinating resources to achieve goals via planning,
organizing, leading, and controlling.
Top managers - CORRECT ANSWER Top: strategy.
Middle managers - CORRECT ANSWER Middle: implementation.
Supervisory managers - CORRECT ANSWER Supervisory: daily operations.
, Planning and controlling relationship - CORRECT ANSWER Planning sets goals; controlling
ensures performance aligns with plans.
Vision for the company - CORRECT ANSWER A long-term goal that guides strategic
decisions.
High ethical standards - CORRECT ANSWER It influences company culture and stakeholder
trust.
Planning process - CORRECT ANSWER Mission, 2. Assess, 3. Objectives, 4. Strategy, 5.
Implement, 6. Evaluate.
Tactical planning - CORRECT ANSWER Translates strategy into specific mid-term plans.
SWOT analysis - CORRECT ANSWER Compares Strengths, Weaknesses, Opportunities,
Threats.
Objectives - CORRECT ANSWER To set goals, measure success, guide actions.
Programmed decisions - CORRECT ANSWER Programmed: routine.
Nonprogrammed decisions - CORRECT ANSWER Nonprogrammed: unique, complex.
Decision-making process - CORRECT ANSWER Identify, gather, generate, evaluate, choose,
implement, monitor.
Leadership - CORRECT ANSWER The ability to influence and guide others.
Overview UPDATED ACTUAL Exam
Questions and CORRECT Answers
Microeconomics - CORRECT ANSWER Microeconomics studies individual consumers,
firms, and industries.
Macroeconomics - CORRECT ANSWER Macroeconomics focuses on the economy as a
whole.
Demand curve - CORRECT ANSWER Demand curve slopes down—lower prices = more
demand.
Supply curve - CORRECT ANSWER Supply curve slopes up—higher prices = more supply.
Factors of production - CORRECT ANSWER Land, labor, capital, and entrepreneurship
affect production levels and efficiency.
Pure competition - CORRECT ANSWER Pure competition offers identical products.
Monopolistic competition - CORRECT ANSWER Monopolistic competition offers
differentiated products.
Mixed economy - CORRECT ANSWER The U.S. has a mixed economy with a capitalist
foundation.
Privatization - CORRECT ANSWER Transferring ownership from the public to the private
sector.
,Business cycle - CORRECT ANSWER Expansion, peak, contraction, trough.
Measures of economic health - CORRECT ANSWER GDP, unemployment rate, inflation,
consumer confidence.
Expansionary monetary policy - CORRECT ANSWER Expansionary increases money
supply.
Restrictive monetary policy - CORRECT ANSWER Restrictive decreases money supply.
Sources of government funds - CORRECT ANSWER Taxes, borrowing, and fees/fines.
Balanced budget - CORRECT ANSWER No. It prevents further debt but doesn't reduce
existing debt.
Economic interdependence - CORRECT ANSWER Global trade, technology, and investment
create economic interdependence.
Global expansion benefits - CORRECT ANSWER Access to new markets and lower
production costs.
Management - CORRECT ANSWER Coordinating resources to achieve goals via planning,
organizing, leading, and controlling.
Top managers - CORRECT ANSWER Top: strategy.
Middle managers - CORRECT ANSWER Middle: implementation.
Supervisory managers - CORRECT ANSWER Supervisory: daily operations.
, Planning and controlling relationship - CORRECT ANSWER Planning sets goals; controlling
ensures performance aligns with plans.
Vision for the company - CORRECT ANSWER A long-term goal that guides strategic
decisions.
High ethical standards - CORRECT ANSWER It influences company culture and stakeholder
trust.
Planning process - CORRECT ANSWER Mission, 2. Assess, 3. Objectives, 4. Strategy, 5.
Implement, 6. Evaluate.
Tactical planning - CORRECT ANSWER Translates strategy into specific mid-term plans.
SWOT analysis - CORRECT ANSWER Compares Strengths, Weaknesses, Opportunities,
Threats.
Objectives - CORRECT ANSWER To set goals, measure success, guide actions.
Programmed decisions - CORRECT ANSWER Programmed: routine.
Nonprogrammed decisions - CORRECT ANSWER Nonprogrammed: unique, complex.
Decision-making process - CORRECT ANSWER Identify, gather, generate, evaluate, choose,
implement, monitor.
Leadership - CORRECT ANSWER The ability to influence and guide others.
