WGU D089 Principles of Economics Exam Practice Questions/ (Top 2024/2025 EXAM REVIEW PAPERS / GRADED A+/ 100% Accurate)

WGU D089 Principles of Economics Exam Practice Questions How are Positive and Normative economics different from each other? -Positive economics clearly states and economic issue, and normative economics provides the value-based solution for the issue. What are factors of production? -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? -By increasing either the quantity of labor of human capital. What are two keys to the use of an economy's factors of production? -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? -Payment What are factor payments? -What the firm pays for the use of the factors of production When human want exceeds the available resources what is the result? -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? -No How is opportunity cost calculated? -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? -As a constant What is happening to opportunity cost along a bowed out production possibilities frontier? -An increase in the quantity demanded What is the inverse relationship between price and quantity known as? -The law of demand What does a fall in the price of a good almost always cause? -An increase in the quantity demanded What are positive and normative economic thought? -Two specific aspects of economic reasoning What does the law of demand assume? -That all variables that affect demand, other than price, remain constant What is a demand curve? -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? -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)? -A change in price - a change in quantity demanded What will result in a shift in a demand curve (left or right)? -A change in a non-price - a change in demand What causes changes in demand (shifts in the demand curve)? - - Changes in consumer income, tastes, and preferences - The size of the population - prices of other goods such as complements and substitute