WGU C211 OA GLOBAL ECONOMICS FOR
MANAGERS EXAM COMPLETE STUDY GUIDE
2026
◉ Civil law. Answer: Law that uses comprehensive statutes and
codes as a primary means to form legal judgments.
◉ Common law. Answer: Law shaped by precedents and traditions
from previous judicial decisions.
◉ Theocratic law. Answer: A legal system based on religious
teachings.
◉ How do civil, common and theocratic laws compare?. 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. 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.
,◉ Intellectual property right. Answer: Rights associated with the
ownership. They primarily include rights associated with patents,
copyrights, and trademarks.
◉ Market economy. Answer: One that is characterized by the
"invisible hand" of market forces-all factors of production should be
privately owned.
◉ Command economy. 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. 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.
◉ Indifference curve. 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. 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.
◉ Marginal rate of substitution.. 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. Answer: The consumption bundles that the
consumer can afford.
◉ How might a budget constraint be impacted by an increase in
income?. Answer: Additional bundles could be consumed with an
increase in income.
◉ Graphical elements needed to determine a consumer's optimal
point of consumption. Answer: Indifference curve and budget
constraint.
MANAGERS EXAM COMPLETE STUDY GUIDE
2026
◉ Civil law. Answer: Law that uses comprehensive statutes and
codes as a primary means to form legal judgments.
◉ Common law. Answer: Law shaped by precedents and traditions
from previous judicial decisions.
◉ Theocratic law. Answer: A legal system based on religious
teachings.
◉ How do civil, common and theocratic laws compare?. 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. 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.
,◉ Intellectual property right. Answer: Rights associated with the
ownership. They primarily include rights associated with patents,
copyrights, and trademarks.
◉ Market economy. Answer: One that is characterized by the
"invisible hand" of market forces-all factors of production should be
privately owned.
◉ Command economy. 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. 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.
◉ Indifference curve. 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. 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.
◉ Marginal rate of substitution.. 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. Answer: The consumption bundles that the
consumer can afford.
◉ How might a budget constraint be impacted by an increase in
income?. Answer: Additional bundles could be consumed with an
increase in income.
◉ Graphical elements needed to determine a consumer's optimal
point of consumption. Answer: Indifference curve and budget
constraint.
