D089 / D 089 Objective Assessment V1 Exam
(Latest Update ) Principles of
Economics | Questions and Answers with
Rationales | Grade A | 100% Correct - WGU
Which type of economy is characterized by a government that plans and controls
all economic activity?
Command
Correct! A command economy is a centralized economic system in which all
economic decisions are made by the nation's government.
What is an example of a normative economic statement?
Marginal tax rates should be lowered on high-income individuals.
Correct! A marginal tax rate is the amount of money an individual pays in taxes on
each additional dollar earned. This statement uses the word "should", which makes
it a value judgment or opinion and a normative statement.
Which characteristic is associated with natural resources from a business
perspective?
They exist without human effort.
Correct! Natural resources are found in nature without any human effort.
, D089 / D 089 Objective Assessment V1 Exam
(Latest Update ) Principles of
Economics | Questions and Answers with
Rationales | Grade A | 100% Correct - WGU
How can the available supply of natural resources be increased?
Discovering new ways to extract resources
Correct! The discovery of different ways to extract natural resources can make
them more available.
A ski resort sells tickets online at $70 per ticket. The resort is not selling many
tickets, so it offers a two-for-one opportunity. Which economic principle is being
used?
People respond to incentives.
Correct! The incentive of a sale or coupon changed the cost from $70 to $35,
making the ski trip more affordable and desirable. This incentive is what likely
changed buyers' behaviors.
What are the characteristics of the production possibility frontier graph?
Trade-offs in choices and downward sloping
Correct! The graph of the production possibility frontier reflects trade-offs in
choices and is downward sloping.
How is scarcity represented on the production possibility frontier?
(Latest Update ) Principles of
Economics | Questions and Answers with
Rationales | Grade A | 100% Correct - WGU
Which type of economy is characterized by a government that plans and controls
all economic activity?
Command
Correct! A command economy is a centralized economic system in which all
economic decisions are made by the nation's government.
What is an example of a normative economic statement?
Marginal tax rates should be lowered on high-income individuals.
Correct! A marginal tax rate is the amount of money an individual pays in taxes on
each additional dollar earned. This statement uses the word "should", which makes
it a value judgment or opinion and a normative statement.
Which characteristic is associated with natural resources from a business
perspective?
They exist without human effort.
Correct! Natural resources are found in nature without any human effort.
, D089 / D 089 Objective Assessment V1 Exam
(Latest Update ) Principles of
Economics | Questions and Answers with
Rationales | Grade A | 100% Correct - WGU
How can the available supply of natural resources be increased?
Discovering new ways to extract resources
Correct! The discovery of different ways to extract natural resources can make
them more available.
A ski resort sells tickets online at $70 per ticket. The resort is not selling many
tickets, so it offers a two-for-one opportunity. Which economic principle is being
used?
People respond to incentives.
Correct! The incentive of a sale or coupon changed the cost from $70 to $35,
making the ski trip more affordable and desirable. This incentive is what likely
changed buyers' behaviors.
What are the characteristics of the production possibility frontier graph?
Trade-offs in choices and downward sloping
Correct! The graph of the production possibility frontier reflects trade-offs in
choices and is downward sloping.
How is scarcity represented on the production possibility frontier?
