WGU D089 [LATEST APPROVED 2024 EDITION]
COMPREHENSIVE QUESTIONS AND CORRECT ANSWERS
ON PRINCIPLES OF ECONOMICS 100% PASSED
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.
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
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 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
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
,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
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
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 answer)
They slope down from left to right
What is the positive relationship between price and quantity known as? - (correct
answer) The law of supply
What does the law of supply assume? - (correct answer) That all variables affecting
supply, other than price, remain constant
What does a rise in the price of a good or service increase? - (correct answer) The
quantity supplied of that good or service
What does a supply curve depict? - (correct answer) The relationship between the
price of a good or service and the quantities companies are willing to sell at those prices
What is a supply schedule? - (correct answer) A table view of the price-quantity
pairing that compose the supply curve.
, What will suppliers do to adjust for non-price changes related to the determinants of
supply? - (correct answer) Shift production
What will suppliers do to adjust for price-related changes on the supply curve? -
(correct answer) Move production levels
what are changes in supply (shifts in the supply curve) caused by? - (correct answer)
Prices of inputs, technology,expectations, number of sellers, and government policies
and regulations
What fundamental similarity do nearly all supply curves share? - (correct answer)
They slope up from left to right
When does the equilibrium price and equilibrium quantity occur? - (correct answer)
Where the supply and demand curves cross.
When does equilibrium occur? - (correct answer) When the quantity demanded is
equal to the quantity supplied
Why would the price be below the equilibrium level? - (correct answer) The quantity
demanded will exceed the quantity supplied. -- Excess demand or a shortage will exist.
What is occurring if the price is above the equilibrium level? - (correct answer) The
quantity supplied will exceed the quantity demanded. -- Excess supply or a surplus will
exist
When does the equilibrium in the market change? - (correct answer) When an event
shifts either the supply or demand curve
What does price elasticity measure? - (correct answer) The responsiveness of the
quantity demanded or supplied of a good to a change in its price.
How is price elasticity of demand calculated? - (correct answer) % change in
quantity demand / % change in price
What are the three ways to describe elasticity? - (correct answer) - Elastic (Quantity
is very responsive)
- Unit Elastic (equal change in quantity)
- Inelastic (Quantity is not very responsive)
What is indicated by an elastic demand or supply curve? - (correct answer) The
quantity demanded or supplied responds to price changes in a greater than proportional
manner.
COMPREHENSIVE QUESTIONS AND CORRECT ANSWERS
ON PRINCIPLES OF ECONOMICS 100% PASSED
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.
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
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 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
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
,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
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
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 answer)
They slope down from left to right
What is the positive relationship between price and quantity known as? - (correct
answer) The law of supply
What does the law of supply assume? - (correct answer) That all variables affecting
supply, other than price, remain constant
What does a rise in the price of a good or service increase? - (correct answer) The
quantity supplied of that good or service
What does a supply curve depict? - (correct answer) The relationship between the
price of a good or service and the quantities companies are willing to sell at those prices
What is a supply schedule? - (correct answer) A table view of the price-quantity
pairing that compose the supply curve.
, What will suppliers do to adjust for non-price changes related to the determinants of
supply? - (correct answer) Shift production
What will suppliers do to adjust for price-related changes on the supply curve? -
(correct answer) Move production levels
what are changes in supply (shifts in the supply curve) caused by? - (correct answer)
Prices of inputs, technology,expectations, number of sellers, and government policies
and regulations
What fundamental similarity do nearly all supply curves share? - (correct answer)
They slope up from left to right
When does the equilibrium price and equilibrium quantity occur? - (correct answer)
Where the supply and demand curves cross.
When does equilibrium occur? - (correct answer) When the quantity demanded is
equal to the quantity supplied
Why would the price be below the equilibrium level? - (correct answer) The quantity
demanded will exceed the quantity supplied. -- Excess demand or a shortage will exist.
What is occurring if the price is above the equilibrium level? - (correct answer) The
quantity supplied will exceed the quantity demanded. -- Excess supply or a surplus will
exist
When does the equilibrium in the market change? - (correct answer) When an event
shifts either the supply or demand curve
What does price elasticity measure? - (correct answer) The responsiveness of the
quantity demanded or supplied of a good to a change in its price.
How is price elasticity of demand calculated? - (correct answer) % change in
quantity demand / % change in price
What are the three ways to describe elasticity? - (correct answer) - Elastic (Quantity
is very responsive)
- Unit Elastic (equal change in quantity)
- Inelastic (Quantity is not very responsive)
What is indicated by an elastic demand or supply curve? - (correct answer) The
quantity demanded or supplied responds to price changes in a greater than proportional
manner.
