WGUl D089l Objectivel Assessmentl
(NEWl 2026/l 2027l Update)l Principlesl
ofl Economicsl Review|l Questionsl &l
Answersl |l Gradel A|l 100%l Correctl
(Verifiedl Solutions)
QUESTION
Thel marketl demandl forl high-endl eyeglassl framesl isl currentlyl atl 5,000l perl
month,l andl identicall firmsl operationl inl thisl marketl arel facingl constantl returnsl tol
scalel inl thel productl rangel ofl 500l tol 1,000l unitsl perl month.
Therel arel currentlyl 10l firmsl supplyingl framesl tol thel market.l whilel pricesl ofl
framesl notl changed,l theirl marketl demandl hasl decreasesl tol 4,500l unitsl perl
month.l
Whichl changel shouldl bel expectedl inl thel numberl ofl firmsl supplyingl framesl tol
thisl marketl inl thel longl run?
Answer:
Al declinel inl thel numberl ofl firms:l onel tol fivel firmsl willl exitl thel market
QUESTION
Whichl typel ofl marketl isl characterizedl byl firmsl withl nol marketl powerl forl anyl
individuall firm?
Answer:
Perfectl Competition
,QUESTION
Genericl drugsl startl appearingl afterl pharmaceuticall firms'l patentsl expire.l Thesel
genericl drugsl havel thel samel formulationl asl name-brandl drugs,l butl theyl arel
pricedl belowl name-brandl medications.l Producingl genericl drugsl requiresl al
significantl capitall investmentl tol establishl al modernl manufacturingl facilityl andl
establishedl distributionl networks.
Whatl isl thel marketl structurel forl thesel drugs?
Answer:
Oligopoly
QUESTION
Howl dol firmsl perfectlyl competitivel marketl maximizel profitsl whenl facingl perfectlyl
elasticl demandl forl theirl products?
Answer:
Firmsl choosel howl muchl tol produce
QUESTION
Whatl isl anl outcomel ofl al perfectlyl competitivel market?
Answer:
Firmsl willl experiencel zerol long-runl economicl profits
QUESTION
Anl individuall firml isl consideringl enteringl al perfectlyl competitivel market.l Thel
averagel costl ofl thel firml isl lowerl thanl thel marketl prices.l
Whatl willl resultsl ifl thel firml entersl thel market?
,Answer:
Thel firml willl enterl thel marketl andl makel al positivel economicl profit
QUESTION
Whenl willl al monopolistl choosel tol producel onel morel unitl ofl al product?
Answer:
Whenl marginall revenuel exceedsl marginall cost
QUESTION
Whichl statementl accuratelyl describesl al concentrationl ratiol forl anl industry?
Answer:
Thel combinedl profitsl ofl thel mostl profitablel firms
QUESTION
Whichl earlyl tooll wasl usedl tol measurel thel degreel ofl monopolyl powerl inl anl
industry?
Answer:
Concentrationl ratio
QUESTION
Howl dol paymentsl flowl froml firmsl tol householdsl inl thel circularl flowl model?
, Answer:
Firmsl willl providel householdsl withl wages,l profit,l interest,l andl rents
QUESTION
Whatl willl householdsl providel tol firmsl inl al factorl market?
Answer:
Land,l Labor,l capitall andl entrepreneurship
QUESTION
Whichl elementl ofl thel circularl flowl modell isl suppliedl byl households
Answer:
Taxes
QUESTION
Whatl isl thel largestl componentl ofl grossl domesticl productl (GDP)l inl thel Unitedl
States?
Answer:
Consumption
QUESTION
WHyl isl thel salel ofl intermediatel goodsl notl includedl inl thel grossl domesticl
productl (GDP)l calculation?
(NEWl 2026/l 2027l Update)l Principlesl
ofl Economicsl Review|l Questionsl &l
Answersl |l Gradel A|l 100%l Correctl
(Verifiedl Solutions)
QUESTION
Thel marketl demandl forl high-endl eyeglassl framesl isl currentlyl atl 5,000l perl
month,l andl identicall firmsl operationl inl thisl marketl arel facingl constantl returnsl tol
scalel inl thel productl rangel ofl 500l tol 1,000l unitsl perl month.
Therel arel currentlyl 10l firmsl supplyingl framesl tol thel market.l whilel pricesl ofl
framesl notl changed,l theirl marketl demandl hasl decreasesl tol 4,500l unitsl perl
month.l
Whichl changel shouldl bel expectedl inl thel numberl ofl firmsl supplyingl framesl tol
thisl marketl inl thel longl run?
Answer:
Al declinel inl thel numberl ofl firms:l onel tol fivel firmsl willl exitl thel market
QUESTION
Whichl typel ofl marketl isl characterizedl byl firmsl withl nol marketl powerl forl anyl
individuall firm?
Answer:
Perfectl Competition
,QUESTION
Genericl drugsl startl appearingl afterl pharmaceuticall firms'l patentsl expire.l Thesel
genericl drugsl havel thel samel formulationl asl name-brandl drugs,l butl theyl arel
pricedl belowl name-brandl medications.l Producingl genericl drugsl requiresl al
significantl capitall investmentl tol establishl al modernl manufacturingl facilityl andl
establishedl distributionl networks.
Whatl isl thel marketl structurel forl thesel drugs?
Answer:
Oligopoly
QUESTION
Howl dol firmsl perfectlyl competitivel marketl maximizel profitsl whenl facingl perfectlyl
elasticl demandl forl theirl products?
Answer:
Firmsl choosel howl muchl tol produce
QUESTION
Whatl isl anl outcomel ofl al perfectlyl competitivel market?
Answer:
Firmsl willl experiencel zerol long-runl economicl profits
QUESTION
Anl individuall firml isl consideringl enteringl al perfectlyl competitivel market.l Thel
averagel costl ofl thel firml isl lowerl thanl thel marketl prices.l
Whatl willl resultsl ifl thel firml entersl thel market?
,Answer:
Thel firml willl enterl thel marketl andl makel al positivel economicl profit
QUESTION
Whenl willl al monopolistl choosel tol producel onel morel unitl ofl al product?
Answer:
Whenl marginall revenuel exceedsl marginall cost
QUESTION
Whichl statementl accuratelyl describesl al concentrationl ratiol forl anl industry?
Answer:
Thel combinedl profitsl ofl thel mostl profitablel firms
QUESTION
Whichl earlyl tooll wasl usedl tol measurel thel degreel ofl monopolyl powerl inl anl
industry?
Answer:
Concentrationl ratio
QUESTION
Howl dol paymentsl flowl froml firmsl tol householdsl inl thel circularl flowl model?
, Answer:
Firmsl willl providel householdsl withl wages,l profit,l interest,l andl rents
QUESTION
Whatl willl householdsl providel tol firmsl inl al factorl market?
Answer:
Land,l Labor,l capitall andl entrepreneurship
QUESTION
Whichl elementl ofl thel circularl flowl modell isl suppliedl byl households
Answer:
Taxes
QUESTION
Whatl isl thel largestl componentl ofl grossl domesticl productl (GDP)l inl thel Unitedl
States?
Answer:
Consumption
QUESTION
WHyl isl thel salel ofl intermediatel goodsl notl includedl inl thel grossl domesticl
productl (GDP)l calculation?
