WGU D089 Objective Assessment (NEW 2025/ 2026 Update) Principles of
Economics
WGU D089 OBJECTIVE ASSESSMENT (NEW 2025/ 2026
UPDATE) PRINCIPLES OF ECONOMICS ACTUAL EXAM COMPLETE
100 QUESTIONS AND CORRECT ANSWERS GRADED A+
GUARANTEED PASS- ACE YOUR EXAM
Why is the circular flow model used?
To describe how factors of production affect growth and decline
To illustrate how capitalism and socialism differ as an economic form
To describe the interaction of businesses and households in markets
To illustrate primarily the use of labor and natural resources in an economy
To describe the interaction of businesses and households in markets
What is a result of increasing opportunity costs?
To consume more of one good, a consumer becomes more and more efficient.
To produce more of one good, the economy gives up more and more of other
goods.
As an economy produces a greater variety of goods, the cost of each good
increases.
When consumers do not want what producers make, increased opportunity for
trade is missed.
To produce more of one good, the economy gives up more and more of other
goods.
How would a production possibility frontier be drawn for an economy that
produces two goods with homogeneous resources?
As a constant slope, downward from left to right
As a ray out of the origin, with a constant slope
1|Page
, WGU D089 Objective Assessment (NEW 2025/ 2026 Update) Principles of
Economics
As a semicircle centered on the origin, sloping downward from left to right
As a limited line, downward from left to right, that does not touch either axis
As a constant slope, downward from left to right
A company is operating at a point inside its production possibility frontier.
Which conclusion is accurate about this company?
The economy of the company will grow too fast.
The resources of the company are being inefficiently utilized.
The company's resources are being used in the most efficient manner.
The production possibilities frontier for the company will shift outward.
The resources of the company are being inefficiently utilized.
A country produces two goods (A and B) and currently operates on the bowed out
production possibilities frontier. What is the relationship between the productions
of Good A and Good B?
If production of Good A increases, then production of Good B will decrease.
If production of Good A increases, then production of Good B will increase.
If production of Good A is constant, then production of B will increase.
If production of Good A is constant, then production of B will decrease.
If production of Good A increases, then production of Good B will decrease.
A local farm grows apples and oranges. Production possibilities for this farm are
provided in the following figure: Assume that this farm operates at Option B.
What happens to the production of apples and oranges if the farm decides to
move to Option D?
Assume that this farm operates at Option B.
2|Page
, WGU D089 Objective Assessment (NEW 2025/ 2026 Update) Principles of
Economics
What happens to the production of apples and oranges if the farm decides to
move to Option D?
Production of apples will decrease by 50 pounds, and production of oranges will
decrease by 45 pounds.
Production of apples will increase by 50 pounds, and production of oranges will
increase by 15 pounds.
Production of apples will increase by 100 pounds, and production of oranges will
increase by 60 pounds.
Production of apples will decrease by 100 pounds, and production of oranges will
decrease by 15 pounds.
Production of apples will increase by 50 pounds, and production of oranges will
increase by 15 pounds.
A group of roommates decides to buy pizza together. The table below shows the
quantity of pizza demanded at different price levels:
3|Page
Economics
WGU D089 OBJECTIVE ASSESSMENT (NEW 2025/ 2026
UPDATE) PRINCIPLES OF ECONOMICS ACTUAL EXAM COMPLETE
100 QUESTIONS AND CORRECT ANSWERS GRADED A+
GUARANTEED PASS- ACE YOUR EXAM
Why is the circular flow model used?
To describe how factors of production affect growth and decline
To illustrate how capitalism and socialism differ as an economic form
To describe the interaction of businesses and households in markets
To illustrate primarily the use of labor and natural resources in an economy
To describe the interaction of businesses and households in markets
What is a result of increasing opportunity costs?
To consume more of one good, a consumer becomes more and more efficient.
To produce more of one good, the economy gives up more and more of other
goods.
As an economy produces a greater variety of goods, the cost of each good
increases.
When consumers do not want what producers make, increased opportunity for
trade is missed.
To produce more of one good, the economy gives up more and more of other
goods.
How would a production possibility frontier be drawn for an economy that
produces two goods with homogeneous resources?
As a constant slope, downward from left to right
As a ray out of the origin, with a constant slope
1|Page
, WGU D089 Objective Assessment (NEW 2025/ 2026 Update) Principles of
Economics
As a semicircle centered on the origin, sloping downward from left to right
As a limited line, downward from left to right, that does not touch either axis
As a constant slope, downward from left to right
A company is operating at a point inside its production possibility frontier.
Which conclusion is accurate about this company?
The economy of the company will grow too fast.
The resources of the company are being inefficiently utilized.
The company's resources are being used in the most efficient manner.
The production possibilities frontier for the company will shift outward.
The resources of the company are being inefficiently utilized.
A country produces two goods (A and B) and currently operates on the bowed out
production possibilities frontier. What is the relationship between the productions
of Good A and Good B?
If production of Good A increases, then production of Good B will decrease.
If production of Good A increases, then production of Good B will increase.
If production of Good A is constant, then production of B will increase.
If production of Good A is constant, then production of B will decrease.
If production of Good A increases, then production of Good B will decrease.
A local farm grows apples and oranges. Production possibilities for this farm are
provided in the following figure: Assume that this farm operates at Option B.
What happens to the production of apples and oranges if the farm decides to
move to Option D?
Assume that this farm operates at Option B.
2|Page
, WGU D089 Objective Assessment (NEW 2025/ 2026 Update) Principles of
Economics
What happens to the production of apples and oranges if the farm decides to
move to Option D?
Production of apples will decrease by 50 pounds, and production of oranges will
decrease by 45 pounds.
Production of apples will increase by 50 pounds, and production of oranges will
increase by 15 pounds.
Production of apples will increase by 100 pounds, and production of oranges will
increase by 60 pounds.
Production of apples will decrease by 100 pounds, and production of oranges will
decrease by 15 pounds.
Production of apples will increase by 50 pounds, and production of oranges will
increase by 15 pounds.
A group of roommates decides to buy pizza together. The table below shows the
quantity of pizza demanded at different price levels:
3|Page
