WGU C211 Global Economics for
Managers Exam 2025/2026 – 90 Actual
Questions with Verified Correct
Answers
Question 1
What is the primary focus of macroeconomics?
A. Individual firm decisions
B. Aggregate economic indicators like GDP and unemployment
C. Supply and demand in specific markets
D. Consumer behavior in retail
B. Aggregate economic indicators like GDP and unemployment
Rationale: Macroeconomics examines economy-wide phenomena, essential for managers
understanding global trends in WGU C211 2025/2026.
Question 2
Gross Domestic Product (GDP) measures:
A. Total income of residents
B. Value of goods and services produced within a country
C. Government spending only
D. Exports minus imports
B. Value of goods and services produced within a country
Rationale: GDP is the standard metric for economic output, key in assessing national
performance for business strategy.
Question 3
Which of the following is not a component of GDP using the expenditure approach?
A. Consumption
B. Investment
C. Government purchases
D. Stock market value
D. Stock market value
Rationale: GDP = C + I + G + (X - M); stock values are financial, not production-based.
,Question 4
Inflation is best defined as:
A. A decrease in the general price level
B. An increase in the general price level
C. A rise in unemployment
D. A fall in interest rates
B. An increase in the general price level
Rationale: Persistent inflation erodes purchasing power, impacting managerial cost decisions
globally.
Question 5
The Consumer Price Index (CPI) measures:
A. Changes in producer prices
B. Cost of living for urban consumers
C. Industrial production
D. Housing starts
B. Cost of living for urban consumers
Rationale: CPI tracks inflation via a basket of goods, crucial for wage and pricing strategies in
business.
Question 6
Unemployment rate is calculated as:
A. Total labor force divided by employed
B. Unemployed divided by labor force
C. Employed divided by population
D. Unemployed divided by population
B. Unemployed divided by labor force
Rationale: This rate indicates economic health; high rates signal recession risks for managers.
Question 7
Fiscal policy involves:
A. Changes in money supply by central banks
B. Government spending and taxation
C. Trade agreements
D. Interest rate adjustments
, B. Government spending and taxation
Rationale: Fiscal tools stimulate or contract the economy, affecting business taxes and demand.
Question 8
Monetary policy is primarily managed by:
A. The Treasury Department
B. Central banks like the Federal Reserve
C. International Monetary Fund
D. World Trade Organization
B. Central banks like the Federal Reserve
Rationale: Central banks control money supply and rates to manage inflation and growth.
Question 9
Expansionary monetary policy includes:
A. Raising interest rates
B. Lowering reserve requirements
C. Increasing taxes
D. Reducing government spending
B. Lowering reserve requirements
Rationale: This increases lending and money supply, boosting economic activity for businesses.
Question 10
The Phillips curve suggests a short-run tradeoff between:
A. Inflation and unemployment
B. GDP and interest rates
C. Exports and imports
D. Savings and investment
A. Inflation and unemployment
Rationale: Lower unemployment often correlates with higher inflation, guiding policy decisions.
Question 11
Aggregate demand curve slopes downward because of:
A. Wealth effect, interest rate effect, exchange rate effect
B. Substitution effect only
C. Income effect only
D. Production costs
Managers Exam 2025/2026 – 90 Actual
Questions with Verified Correct
Answers
Question 1
What is the primary focus of macroeconomics?
A. Individual firm decisions
B. Aggregate economic indicators like GDP and unemployment
C. Supply and demand in specific markets
D. Consumer behavior in retail
B. Aggregate economic indicators like GDP and unemployment
Rationale: Macroeconomics examines economy-wide phenomena, essential for managers
understanding global trends in WGU C211 2025/2026.
Question 2
Gross Domestic Product (GDP) measures:
A. Total income of residents
B. Value of goods and services produced within a country
C. Government spending only
D. Exports minus imports
B. Value of goods and services produced within a country
Rationale: GDP is the standard metric for economic output, key in assessing national
performance for business strategy.
Question 3
Which of the following is not a component of GDP using the expenditure approach?
A. Consumption
B. Investment
C. Government purchases
D. Stock market value
D. Stock market value
Rationale: GDP = C + I + G + (X - M); stock values are financial, not production-based.
,Question 4
Inflation is best defined as:
A. A decrease in the general price level
B. An increase in the general price level
C. A rise in unemployment
D. A fall in interest rates
B. An increase in the general price level
Rationale: Persistent inflation erodes purchasing power, impacting managerial cost decisions
globally.
Question 5
The Consumer Price Index (CPI) measures:
A. Changes in producer prices
B. Cost of living for urban consumers
C. Industrial production
D. Housing starts
B. Cost of living for urban consumers
Rationale: CPI tracks inflation via a basket of goods, crucial for wage and pricing strategies in
business.
Question 6
Unemployment rate is calculated as:
A. Total labor force divided by employed
B. Unemployed divided by labor force
C. Employed divided by population
D. Unemployed divided by population
B. Unemployed divided by labor force
Rationale: This rate indicates economic health; high rates signal recession risks for managers.
Question 7
Fiscal policy involves:
A. Changes in money supply by central banks
B. Government spending and taxation
C. Trade agreements
D. Interest rate adjustments
, B. Government spending and taxation
Rationale: Fiscal tools stimulate or contract the economy, affecting business taxes and demand.
Question 8
Monetary policy is primarily managed by:
A. The Treasury Department
B. Central banks like the Federal Reserve
C. International Monetary Fund
D. World Trade Organization
B. Central banks like the Federal Reserve
Rationale: Central banks control money supply and rates to manage inflation and growth.
Question 9
Expansionary monetary policy includes:
A. Raising interest rates
B. Lowering reserve requirements
C. Increasing taxes
D. Reducing government spending
B. Lowering reserve requirements
Rationale: This increases lending and money supply, boosting economic activity for businesses.
Question 10
The Phillips curve suggests a short-run tradeoff between:
A. Inflation and unemployment
B. GDP and interest rates
C. Exports and imports
D. Savings and investment
A. Inflation and unemployment
Rationale: Lower unemployment often correlates with higher inflation, guiding policy decisions.
Question 11
Aggregate demand curve slopes downward because of:
A. Wealth effect, interest rate effect, exchange rate effect
B. Substitution effect only
C. Income effect only
D. Production costs
