WGU D089 PRE- ASSESSMENT PRACTICE EXAM
QUESTIONS WITH 100% CORRECT AND VERIFIED
ANSWERS
Correct 96
100%
Incorrect 00
Your answers
1 of 96
Definition
LRAS is also known as potential GDP-when an economy is utilizing all
labor and assets to their fullest then unemployment is low.
Give this one a try later!
, 5.What is the relationship between 10. What is the difference between
diminishing marginal returns and total the HHI and the 4-firm concentration
costs in the short run? ratio?
14. What is the relationship between 8.What is the relationship
inflation and unemployment shown between the LRAS, potential
by the Phillip's curve? GDP, and full-
employment GDP?
Don't know?
2 of 96
Term
3. What are three benefits of specialization?
Give this one a try later!
Equal amounts are produced Less stuff is produced than working
as working independently. independently. Reduced efficiency,
Stable efficiency, no consumer consumer costs.
benefits.
More stuff is produced but at More stuff is produced than
lower quality. Decreased working independently. Greater
efficiency, efficiency, consumer benefits.
producer losses.
Don't know?
, 3 of 96
Definition
700+500=1200/3000=$0.40 per cookie
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6.Describe and illustrate a case where there is a decrease in supply. Be sure to
identify the market being analyzed and the event leading to the decrease is
supply.
6. Gus' cookie business produces 3,000 cookies in a month. His total variable
costs are $700 and his total fixed costs are $500. What is his average total
cost?
11. When a local grocery store increased the price of marshmallows by 8%, the
quantity of marshmallows demanded decreased by 16%. What is the price elasticity
of marshmallows?
7. What is the unemployment rate in a country with 14 million people
unemployed and a labor force of 350 million people?
Don't know?
4 of 96
Term
, 8. How would an increase in the demand for money change the
interest rate?
Give this one a try later!
Give an example of a "What" question. 1. What to produce? Ex: One business wants
to drill for oil, the other want to raise cattle. 2. How to produce it? Ex: Company
needs to decide to use a current factory or find a new location. 3. From who
to
produce?
By instituting policies such as pollution penalites, permitting civil lawsuits by
private parties to recover damages, and levying environmental taxes. These
regulations can help recover funds to help fix the damage caused by negative
externalities.
Money supply and interest rates have an inverse relationship. A larger money
supply lowers market interest rates, making it less expensive for consumers to
borrow. Conversely, smaller money supplies tend to raise market interest rates,
making it pricier for consumers to take out a loan.
A warranty is a promise to fix or replace the good for a certain period of time. In a
service contract, the buyer pays an extra amount and the seller agrees to fix
anything that goes wrong for a set time period.
Don't know?
QUESTIONS WITH 100% CORRECT AND VERIFIED
ANSWERS
Correct 96
100%
Incorrect 00
Your answers
1 of 96
Definition
LRAS is also known as potential GDP-when an economy is utilizing all
labor and assets to their fullest then unemployment is low.
Give this one a try later!
, 5.What is the relationship between 10. What is the difference between
diminishing marginal returns and total the HHI and the 4-firm concentration
costs in the short run? ratio?
14. What is the relationship between 8.What is the relationship
inflation and unemployment shown between the LRAS, potential
by the Phillip's curve? GDP, and full-
employment GDP?
Don't know?
2 of 96
Term
3. What are three benefits of specialization?
Give this one a try later!
Equal amounts are produced Less stuff is produced than working
as working independently. independently. Reduced efficiency,
Stable efficiency, no consumer consumer costs.
benefits.
More stuff is produced but at More stuff is produced than
lower quality. Decreased working independently. Greater
efficiency, efficiency, consumer benefits.
producer losses.
Don't know?
, 3 of 96
Definition
700+500=1200/3000=$0.40 per cookie
Give this one a try later!
6.Describe and illustrate a case where there is a decrease in supply. Be sure to
identify the market being analyzed and the event leading to the decrease is
supply.
6. Gus' cookie business produces 3,000 cookies in a month. His total variable
costs are $700 and his total fixed costs are $500. What is his average total
cost?
11. When a local grocery store increased the price of marshmallows by 8%, the
quantity of marshmallows demanded decreased by 16%. What is the price elasticity
of marshmallows?
7. What is the unemployment rate in a country with 14 million people
unemployed and a labor force of 350 million people?
Don't know?
4 of 96
Term
, 8. How would an increase in the demand for money change the
interest rate?
Give this one a try later!
Give an example of a "What" question. 1. What to produce? Ex: One business wants
to drill for oil, the other want to raise cattle. 2. How to produce it? Ex: Company
needs to decide to use a current factory or find a new location. 3. From who
to
produce?
By instituting policies such as pollution penalites, permitting civil lawsuits by
private parties to recover damages, and levying environmental taxes. These
regulations can help recover funds to help fix the damage caused by negative
externalities.
Money supply and interest rates have an inverse relationship. A larger money
supply lowers market interest rates, making it less expensive for consumers to
borrow. Conversely, smaller money supplies tend to raise market interest rates,
making it pricier for consumers to take out a loan.
A warranty is a promise to fix or replace the good for a certain period of time. In a
service contract, the buyer pays an extra amount and the seller agrees to fix
anything that goes wrong for a set time period.
Don't know?
