- A
Use IAM conditions to deny the compute.instances.create permission without the label.
Why wrong: IAM conditions can check for labels, but they apply to users, not resources; it's more complex than organization policy.
- B
Set up VPC Service Controls to restrict access to the production VPC.
Why wrong: VPC Service Controls control data exfiltration, not public IP assignment.
- C
Create an organization policy constraint that prohibits external IP addresses on Compute Engine instances in the production folder.
This restricts public IPs for instances under the production folder.
- D
Create a folder for each environment and apply the label automatically using a Cloud Function triggered by Resource Manager events.
Why wrong: This is reactive and not as effective as proactive enforcement.
- E
Create a custom organization policy constraint that requires the 'environment' label on Compute Engine instances.
This enforces that all instances have the required label.
Cloud Digital Leader How Google Cloud Resources Are Managed Practice Question
This GCDL practice question tests your understanding of how google cloud resources are managed. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
An organization wants to enforce that all Compute Engine instances must have a label 'environment' set to 'production', 'staging', or 'development'. They also want to ensure that instances in the 'production' folder cannot be created with public IP addresses. Which THREE steps should they take? (Choose 3)
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Create an organization policy constraint that prohibits external IP addresses on Compute Engine instances in the production folder.
The correct steps are options C and E. Option C uses an organization policy constraint to prohibit external IP addresses on Compute Engine instances in the production folder, directly addressing the requirement to prevent public IPs. Option E uses a custom organization policy constraint to require the 'environment' label, enforcing that all instances have the label. Option A is not recommended because IAM conditions are not the standard way to enforce labels; organization policies are more suitable. Option B is incorrect because VPC Service Controls restrict data exfiltration, not the creation of instances with public IPs. Option D involves automatically applying labels via a Cloud Function, which is unnecessary if a policy constraint already requires the label, and the focus should be on enforcement rather than remediation. While the question asks for three steps, only two correct options are provided; the third step would be to create the folder structure for each environment, which is implied but not listed as a standalone option.
Key principle: ACLs process entries top to bottom and stop at the first match. Entry order and interface direction matter as much as the permit or deny statement.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Use IAM conditions to deny the compute.instances.create permission without the label.
Why it's wrong here
IAM conditions can check for labels, but they apply to users, not resources; it's more complex than organization policy.
- ✗
Set up VPC Service Controls to restrict access to the production VPC.
Why it's wrong here
VPC Service Controls control data exfiltration, not public IP assignment.
- ✓
Create an organization policy constraint that prohibits external IP addresses on Compute Engine instances in the production folder.
Why this is correct
This restricts public IPs for instances under the production folder.
Related concept
Standard ACLs match source addresses.
- ✗
Create a folder for each environment and apply the label automatically using a Cloud Function triggered by Resource Manager events.
Why it's wrong here
This is reactive and not as effective as proactive enforcement.
- ✓
Create a custom organization policy constraint that requires the 'environment' label on Compute Engine instances.
Why this is correct
This enforces that all instances have the required label.
Related concept
Standard ACLs match source addresses.
Common exam traps
Common exam trap: ACLs stop at the first match
ACLs are processed top to bottom. The first matching entry wins, and an implicit deny usually exists at the end.
Detailed technical explanation
How to think about this question
ACL questions test precision: source, destination, protocol, port and direction. A generally correct ACL can still fail if it is applied on the wrong interface or in the wrong direction.
KKey Concepts to Remember
- Standard ACLs match source addresses.
- Extended ACLs can match source, destination, protocol and ports.
- The first matching ACL entry is used.
- There is usually an implicit deny at the end.
TExam Day Tips
- Check inbound versus outbound direction.
- Read the ACL from top to bottom.
- Look for a broader permit or deny above the intended line.
Key takeaway
ACLs process entries top to bottom and stop at the first match. Entry order and interface direction matter as much as the permit or deny statement.
Real-world example
How this comes up in practice
A company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
What to study next
Got this wrong? Here's your next step.
Review ACL processing order, placement rules (standard near destination, extended near source), and inbound vs outbound direction. Study wildcard masks and implicit deny. Then practise related GCDL ACL questions on filtering logic and placement.
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FAQ
Questions learners often ask
What does this GCDL question test?
How Google Cloud Resources Are Managed — This question tests How Google Cloud Resources Are Managed — Standard ACLs match source addresses..
What is the correct answer to this question?
The correct answer is: Create an organization policy constraint that prohibits external IP addresses on Compute Engine instances in the production folder. — The correct steps are options C and E. Option C uses an organization policy constraint to prohibit external IP addresses on Compute Engine instances in the production folder, directly addressing the requirement to prevent public IPs. Option E uses a custom organization policy constraint to require the 'environment' label, enforcing that all instances have the label. Option A is not recommended because IAM conditions are not the standard way to enforce labels; organization policies are more suitable. Option B is incorrect because VPC Service Controls restrict data exfiltration, not the creation of instances with public IPs. Option D involves automatically applying labels via a Cloud Function, which is unnecessary if a policy constraint already requires the label, and the focus should be on enforcement rather than remediation. While the question asks for three steps, only two correct options are provided; the third step would be to create the folder structure for each environment, which is implied but not listed as a standalone option.
What should I do if I get this GCDL question wrong?
Review ACL processing order, placement rules (standard near destination, extended near source), and inbound vs outbound direction. Study wildcard masks and implicit deny. Then practise related GCDL ACL questions on filtering logic and placement.
What is the key concept behind this question?
Standard ACLs match source addresses.
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Last reviewed: Jul 4, 2026
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