PRINCIPLES OF ECONOMICS - WGU D089
(2026)ACTUAL EXAM TEST COMPLETE
QUESTIONS WITH VERIFIED ANSWERS WITH
RATIONALES (100 ACCURATE SOLUTIONS)
1. How are Positive and Normative economics different from each other?
*Answer* Positive economics clearly states and economic issue, and normative economics provides the
value-based solution for the issue.
2. What are factors of production?
*Answer* The resources the economy has available to produce goods and services
3. How can Labor's contribution to an economy's output of goods and services
be increased?
*Answer* By increasing either the quantity of labor of human capital.
4. What are two keys to the use of an economy's factors of production?
*Answer* Technology and, in the case of a market economic system, the ettorts of entrepreneurs
5. For every factor of production (or input) what is there an associated factor
of?
*Answer* Payment
, PRINCIPLES OF ECONOMICS - WGU D089
(2026)ACTUAL EXAM TEST COMPLETE
QUESTIONS WITH VERIFIED ANSWERS WITH
RATIONALES (100 ACCURATE SOLUTIONS)
6. What are factor payments?
*Answer* What the firm pays for the use of the factors of production
7. When human want exceeds the available resources what is the result?
*Answer* Scarcity
8. 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?
*Answer* No
9. How is opportunity cost calculated?
*Answer* By dividing the amount of a good you have given up by the amount of the good you have
gained.
10. How does opportunity cost appear along a linear production possibilities
frontier?
, PRINCIPLES OF ECONOMICS - WGU D089
(2026)ACTUAL EXAM TEST COMPLETE
QUESTIONS WITH VERIFIED ANSWERS WITH
RATIONALES (100 ACCURATE SOLUTIONS)
*Answer* As a constant
11. What is happening to opportunity cost along a bowed out production
possibilities frontier?
*Answer* An increase in the quantity demanded
12. What is the inverse relationship between price and quantity known as?
*Answer* The law of demand
13. What does a fall in the price of a good almost always cause?
*Answer* An increase in the quantity demanded
14. What are positive and normative economic thought?
*Answer* Two specific aspects of economic reasoning
15. What does the law of demand assume?
*Answer* That all variables that attect demand, other than price, remain constant
, PRINCIPLES OF ECONOMICS - WGU D089
(2026)ACTUAL EXAM TEST COMPLETE
QUESTIONS WITH VERIFIED ANSWERS WITH
RATIONALES (100 ACCURATE SOLUTIONS)
16. What is a demand curve?
*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.
17. What is a demand schedule?
*Answer* A table view of the price-quantity pairings that compose the demand curve
18. What will result in movement along a demand curve (up or down)?
*Answer* A change in price - a change in quantity demanded
19. What will result in a shift in a demand curve (left or right)?
*Answer* A change in a non-price
- a change in demand
20. What causes changes in demand (shifts in the demand curve)?
*Answer* - Changes in consumer income, tastes, and preferences
- The size of the population
(2026)ACTUAL EXAM TEST COMPLETE
QUESTIONS WITH VERIFIED ANSWERS WITH
RATIONALES (100 ACCURATE SOLUTIONS)
1. How are Positive and Normative economics different from each other?
*Answer* Positive economics clearly states and economic issue, and normative economics provides the
value-based solution for the issue.
2. What are factors of production?
*Answer* The resources the economy has available to produce goods and services
3. How can Labor's contribution to an economy's output of goods and services
be increased?
*Answer* By increasing either the quantity of labor of human capital.
4. What are two keys to the use of an economy's factors of production?
*Answer* Technology and, in the case of a market economic system, the ettorts of entrepreneurs
5. For every factor of production (or input) what is there an associated factor
of?
*Answer* Payment
, PRINCIPLES OF ECONOMICS - WGU D089
(2026)ACTUAL EXAM TEST COMPLETE
QUESTIONS WITH VERIFIED ANSWERS WITH
RATIONALES (100 ACCURATE SOLUTIONS)
6. What are factor payments?
*Answer* What the firm pays for the use of the factors of production
7. When human want exceeds the available resources what is the result?
*Answer* Scarcity
8. 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?
*Answer* No
9. How is opportunity cost calculated?
*Answer* By dividing the amount of a good you have given up by the amount of the good you have
gained.
10. How does opportunity cost appear along a linear production possibilities
frontier?
, PRINCIPLES OF ECONOMICS - WGU D089
(2026)ACTUAL EXAM TEST COMPLETE
QUESTIONS WITH VERIFIED ANSWERS WITH
RATIONALES (100 ACCURATE SOLUTIONS)
*Answer* As a constant
11. What is happening to opportunity cost along a bowed out production
possibilities frontier?
*Answer* An increase in the quantity demanded
12. What is the inverse relationship between price and quantity known as?
*Answer* The law of demand
13. What does a fall in the price of a good almost always cause?
*Answer* An increase in the quantity demanded
14. What are positive and normative economic thought?
*Answer* Two specific aspects of economic reasoning
15. What does the law of demand assume?
*Answer* That all variables that attect demand, other than price, remain constant
, PRINCIPLES OF ECONOMICS - WGU D089
(2026)ACTUAL EXAM TEST COMPLETE
QUESTIONS WITH VERIFIED ANSWERS WITH
RATIONALES (100 ACCURATE SOLUTIONS)
16. What is a demand curve?
*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.
17. What is a demand schedule?
*Answer* A table view of the price-quantity pairings that compose the demand curve
18. What will result in movement along a demand curve (up or down)?
*Answer* A change in price - a change in quantity demanded
19. What will result in a shift in a demand curve (left or right)?
*Answer* A change in a non-price
- a change in demand
20. What causes changes in demand (shifts in the demand curve)?
*Answer* - Changes in consumer income, tastes, and preferences
- The size of the population
