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PRINCIPLES OF ECONOMICS WGU D089 EXAM NEWEST
VERSION -2025/2026- 100+ QUESTIONS AND VERIFIED
ANSWERS 100% CORRECT GUARANTEED SUCCESS
What is indicated by a unitary elasticity demand or supply curve?
A given percentage change in price leads to an equal percentage change in the
quantity demanded or supplied.
What happens if demand is inelastic?
An increase in price causes an increase in total revenue.
What happens if demand is elastic?
An increase in price causes a decrease in total revenue
Why would a price floor or a price ceiling be imposed?
It will prevent a market from adjusting to its equilibrium price and quantity and
thus will create an inefficient outcome
What is the outcome of a price ceiling being set below the equilibrium price?
Quantity demanded will exceed quantity supplied and excess demand or
shortages will result.
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
, 2
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
, 3
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 substitutes
- expectations about the future.
What fundamental similarity do nearly all demand curves share?
They slope down from left to right
What is the positive relationship between price and quantity known as?
The law of supply
What does the law of supply assume?
That all variables affecting supply, other than price, remain constant
What does a rise in the price of a good or service increase?
The quantity supplied of that good or service
What does a supply curve depict?
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?
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?
PRINCIPLES OF ECONOMICS WGU D089 EXAM NEWEST
VERSION -2025/2026- 100+ QUESTIONS AND VERIFIED
ANSWERS 100% CORRECT GUARANTEED SUCCESS
What is indicated by a unitary elasticity demand or supply curve?
A given percentage change in price leads to an equal percentage change in the
quantity demanded or supplied.
What happens if demand is inelastic?
An increase in price causes an increase in total revenue.
What happens if demand is elastic?
An increase in price causes a decrease in total revenue
Why would a price floor or a price ceiling be imposed?
It will prevent a market from adjusting to its equilibrium price and quantity and
thus will create an inefficient outcome
What is the outcome of a price ceiling being set below the equilibrium price?
Quantity demanded will exceed quantity supplied and excess demand or
shortages will result.
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
, 2
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
, 3
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 substitutes
- expectations about the future.
What fundamental similarity do nearly all demand curves share?
They slope down from left to right
What is the positive relationship between price and quantity known as?
The law of supply
What does the law of supply assume?
That all variables affecting supply, other than price, remain constant
What does a rise in the price of a good or service increase?
The quantity supplied of that good or service
What does a supply curve depict?
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?
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?
