WGU D089 PRINCIPLES OF ECONOMICS EXAM TEST
WITH 100% CORRECT AND VERIFIED ANSWERS
Correct 32
100%
Incorrect 00
Your answers
1 of 32
Term
What are the characteristics of the production possibility frontier
graph?
Give this one a try later!
, Discovering new ways to extract resources
Correct! The discovery of different ways to extract natural resources can make them
more available.
Entitlements and mandatory spending
Correct! Entitlements and other mandatory spending compose about two-thirds of
government spending.
Borrowing and stock issues by firms
Correct! Firms borrow from financial markets using bonds and raise funds by selling
equity.
Trade-offs in choices and downward sloping
Correct! The graph of the production possibility frontier reflects trade-offs in
choices and is downward sloping.
Don't know?
2 of 32
Term
The U.S. Bureau of Labor Statistics (BLS) uses the cost of a fixed
basket that represents the average family's purchases to calculate a
measure of inflation. Which measure is being calculated?
Give this one a try later!
, Shifts to the right
Correct! Increase in productivity shifts the LRAS curve to the right.
The aggregate demand curve will shift to the left.
Correct! Consumer confidence is a principal component of aggregate
demand. Declining consumer confidence will reduce consumption, so aggregate
demand will decrease, shifting the curve to the left.
Employed persons plus those who are unemployed and actively seeking a job
Correct! The labor force participation rate is the fraction of people who are either
employed or active job seekers.
Consumer price index
Correct! Consumer price index is a measure of inflation that U.S.
government statisticians calculate based on the price level from a fixed
basket of goods and services that represents the average consumer's
purchases.
Don't know?
3 of 32
Term
The University of Michigan's "Surveys of Consumers" has shown a sharp
decline in consumer confidence.
How will this change affect aggregate demand?
Give this one a try later!
, It increased European exports to the United States, and this increased the U.S.
negative trade balance with the European Union.
Correct! The appreciation of the dollar will make European products cheaper in the
U.S., increasing EU exports to the U.S.
The supply of steel is elastic.
Correct! Because the quantity supplied increased by more than 5%, it is
reasonable to conclude that the supply of steel is elastic.
Shifts to the right
Correct! If the government enacts an expansionary monetary policy, interest
rates are reduced. This causes consumption to increase, which shifts the
aggregate
demand curve to the right.
The aggregate demand curve will shift to the left.
Correct! Consumer confidence is a principal component of aggregate
demand. Declining consumer confidence will reduce consumption, so
aggregate demand will decrease, shifting the curve to the left.
Don't know?
4 of 32
Term
Which characteristic is associated with natural resources from a
business perspective?
Give this one a try later!
WITH 100% CORRECT AND VERIFIED ANSWERS
Correct 32
100%
Incorrect 00
Your answers
1 of 32
Term
What are the characteristics of the production possibility frontier
graph?
Give this one a try later!
, Discovering new ways to extract resources
Correct! The discovery of different ways to extract natural resources can make them
more available.
Entitlements and mandatory spending
Correct! Entitlements and other mandatory spending compose about two-thirds of
government spending.
Borrowing and stock issues by firms
Correct! Firms borrow from financial markets using bonds and raise funds by selling
equity.
Trade-offs in choices and downward sloping
Correct! The graph of the production possibility frontier reflects trade-offs in
choices and is downward sloping.
Don't know?
2 of 32
Term
The U.S. Bureau of Labor Statistics (BLS) uses the cost of a fixed
basket that represents the average family's purchases to calculate a
measure of inflation. Which measure is being calculated?
Give this one a try later!
, Shifts to the right
Correct! Increase in productivity shifts the LRAS curve to the right.
The aggregate demand curve will shift to the left.
Correct! Consumer confidence is a principal component of aggregate
demand. Declining consumer confidence will reduce consumption, so aggregate
demand will decrease, shifting the curve to the left.
Employed persons plus those who are unemployed and actively seeking a job
Correct! The labor force participation rate is the fraction of people who are either
employed or active job seekers.
Consumer price index
Correct! Consumer price index is a measure of inflation that U.S.
government statisticians calculate based on the price level from a fixed
basket of goods and services that represents the average consumer's
purchases.
Don't know?
3 of 32
Term
The University of Michigan's "Surveys of Consumers" has shown a sharp
decline in consumer confidence.
How will this change affect aggregate demand?
Give this one a try later!
, It increased European exports to the United States, and this increased the U.S.
negative trade balance with the European Union.
Correct! The appreciation of the dollar will make European products cheaper in the
U.S., increasing EU exports to the U.S.
The supply of steel is elastic.
Correct! Because the quantity supplied increased by more than 5%, it is
reasonable to conclude that the supply of steel is elastic.
Shifts to the right
Correct! If the government enacts an expansionary monetary policy, interest
rates are reduced. This causes consumption to increase, which shifts the
aggregate
demand curve to the right.
The aggregate demand curve will shift to the left.
Correct! Consumer confidence is a principal component of aggregate
demand. Declining consumer confidence will reduce consumption, so
aggregate demand will decrease, shifting the curve to the left.
Don't know?
4 of 32
Term
Which characteristic is associated with natural resources from a
business perspective?
Give this one a try later!
