WGU D089 PRINCIPLES OF ECONOMICS EXAM
COMPLETE
QUESTIONS AND VERIFIED ANSWERS, A+ GRADED
STUDY GUIDE 2026/2027 LATEST UPDATE
How is opportunity cost calculated? - CORRECT ANSWER>>>>By
dividing the amount of a good you have given up by the amount of
the good you have gained.
How does opportunity cost appear along a linear production
possibilities frontier? - CORRECT ANSWER>>>>As a constant
What is happening to opportunity cost along a bowed out production
possibilities frontier? -
CORRECT ANSWER>>>>An increase in the quantity demanded
What is the inverse relationship between price and quantity known
as? - CORRECT ANSWER>>>>The law of demand
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,What does a fall in the price of a good almost always cause? -
CORRECT ANSWER>>>>An increase in the quantity demanded
What are positive and normative economic thought? - CORRECT
ANSWER>>>>Two specific aspects of economic reasoning
What does the law of demand assume? - CORRECT
ANSWER>>>>That all variables that affect demand, other than price,
remain constant
What is a demand curve? - CORRECT ANSWER>>>>a graphical
representation depicting the relationship between a good or service's
price and the quantities consumers are willing to buy at those prices.
What is a demand schedule? - CORRECT ANSWER>>>>A table
view of the price-quantity pairings that compose the demand curve
What will result in movement along a demand curve (up or down)? -
CORRECT ANSWER>>>>A change in price - a change in quantity
demanded
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,What will result in a shift in a demand curve (left or right)? -
CORRECT ANSWER>>>>A change in a non-price - a change in
demand
How are Positive and Normative economics different from each
other? - CORRECT
ANSWER>>>>Positive economics clearly states and economic issue,
and normative economics provides the value-based solution for the
issue.
What are factors of production? - CORRECT ANSWER>>>>The
resources the economy has available to produce goods and services
How can Labor's contribution to an economy's output of goods and
services be increased? - CORRECT ANSWER>>>>By increasing
either the quantity of labor of human capital.
What are two keys to the use of an economy's factors of production? -
CORRECT ANSWER>>>>Technology and, in the case of a market
economic system, the efforts of entrepreneurs
For every factor of production (or input) what is there an associated
factor of? - CORRECT
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, ANSWER>>>>Payment
What are factor payments? - CORRECT ANSWER>>>>What the
firm pays for the use of the factors of production
When human want exceeds the available resources what is the result?
- CORRECT
ANSWER>>>>Scarcity
If the inputs of production are underutilized, is a decrease in
production of the other good required when increasing production to
the point that the output combinations sit on the production
possibilities frontier? - CORRECT ANSWER>>>>No
What causes changes in demand (shifts in the demand curve)? -
CORRECT ANSWER>>>>- Changes in consumer income, tastes,
and preferences
- The size of the population
- prices of other goods such as complements and substitutes -
expectations about the future.
What fundamental similarity do nearly all demand curves share? -
CORRECT
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COMPLETE
QUESTIONS AND VERIFIED ANSWERS, A+ GRADED
STUDY GUIDE 2026/2027 LATEST UPDATE
How is opportunity cost calculated? - CORRECT ANSWER>>>>By
dividing the amount of a good you have given up by the amount of
the good you have gained.
How does opportunity cost appear along a linear production
possibilities frontier? - CORRECT ANSWER>>>>As a constant
What is happening to opportunity cost along a bowed out production
possibilities frontier? -
CORRECT ANSWER>>>>An increase in the quantity demanded
What is the inverse relationship between price and quantity known
as? - CORRECT ANSWER>>>>The law of demand
Page | 1
,What does a fall in the price of a good almost always cause? -
CORRECT ANSWER>>>>An increase in the quantity demanded
What are positive and normative economic thought? - CORRECT
ANSWER>>>>Two specific aspects of economic reasoning
What does the law of demand assume? - CORRECT
ANSWER>>>>That all variables that affect demand, other than price,
remain constant
What is a demand curve? - CORRECT ANSWER>>>>a graphical
representation depicting the relationship between a good or service's
price and the quantities consumers are willing to buy at those prices.
What is a demand schedule? - CORRECT ANSWER>>>>A table
view of the price-quantity pairings that compose the demand curve
What will result in movement along a demand curve (up or down)? -
CORRECT ANSWER>>>>A change in price - a change in quantity
demanded
Page | 2
,What will result in a shift in a demand curve (left or right)? -
CORRECT ANSWER>>>>A change in a non-price - a change in
demand
How are Positive and Normative economics different from each
other? - CORRECT
ANSWER>>>>Positive economics clearly states and economic issue,
and normative economics provides the value-based solution for the
issue.
What are factors of production? - CORRECT ANSWER>>>>The
resources the economy has available to produce goods and services
How can Labor's contribution to an economy's output of goods and
services be increased? - CORRECT ANSWER>>>>By increasing
either the quantity of labor of human capital.
What are two keys to the use of an economy's factors of production? -
CORRECT ANSWER>>>>Technology and, in the case of a market
economic system, the efforts of entrepreneurs
For every factor of production (or input) what is there an associated
factor of? - CORRECT
Page | 3
, ANSWER>>>>Payment
What are factor payments? - CORRECT ANSWER>>>>What the
firm pays for the use of the factors of production
When human want exceeds the available resources what is the result?
- CORRECT
ANSWER>>>>Scarcity
If the inputs of production are underutilized, is a decrease in
production of the other good required when increasing production to
the point that the output combinations sit on the production
possibilities frontier? - CORRECT ANSWER>>>>No
What causes changes in demand (shifts in the demand curve)? -
CORRECT ANSWER>>>>- Changes in consumer income, tastes,
and preferences
- The size of the population
- prices of other goods such as complements and substitutes -
expectations about the future.
What fundamental similarity do nearly all demand curves share? -
CORRECT
Page | 4
