1|Page
Principles of Economics D089 Pre-Assessment
Exam Latest All 70 Correctly Answered Questions/
WGU D089 Pre-Assessment 2025 Review
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.
What are factors of production? - ...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? - ...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? - ...ANSWER...✓✓ Technology and, in the case
of a market economic system, the efforts of
entrepreneurs
,2|Page
For every factor of production (or input) what is there an
associated factor of? - ...ANSWER...✓✓ Payment
What are factor payments? - ...ANSWER...✓✓ What the
firm pays for the use of the factors of production
When human want exceeds the available resources what
is the result? - ...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? - ...ANSWER...✓✓ No
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.
How does opportunity cost appear along a linear
production possibilities frontier? - ...ANSWER...✓✓ As a
constant
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What is happening to opportunity cost along a bowed out
production possibilities frontier? - ...ANSWER...✓✓ An
increase in the quantity demanded
What is the inverse relationship between price and
quantity known as? - ...ANSWER...✓✓ The law of demand
What does a fall in the price of a good almost always
cause? - ...ANSWER...✓✓ An increase in the quantity
demanded
What are positive and normative economic thought? -
...ANSWER...✓✓ Two specific aspects of economic
reasoning
What does the law of demand assume? - ...ANSWER...✓✓
That all variables that affect demand, other than price,
remain constant
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.
, 4|Page
What is a demand schedule? - ...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)? - ...ANSWER...✓✓ A change in price - a change
in quantity demanded
What will result in a shift in a demand curve (left or
right)? - ...ANSWER...✓✓ A change in a non-price - a
change in demand
What causes changes in demand (shifts in the demand
curve)? - ...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.
Principles of Economics D089 Pre-Assessment
Exam Latest All 70 Correctly Answered Questions/
WGU D089 Pre-Assessment 2025 Review
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.
What are factors of production? - ...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? - ...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? - ...ANSWER...✓✓ Technology and, in the case
of a market economic system, the efforts of
entrepreneurs
,2|Page
For every factor of production (or input) what is there an
associated factor of? - ...ANSWER...✓✓ Payment
What are factor payments? - ...ANSWER...✓✓ What the
firm pays for the use of the factors of production
When human want exceeds the available resources what
is the result? - ...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? - ...ANSWER...✓✓ No
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.
How does opportunity cost appear along a linear
production possibilities frontier? - ...ANSWER...✓✓ As a
constant
,3|Page
What is happening to opportunity cost along a bowed out
production possibilities frontier? - ...ANSWER...✓✓ An
increase in the quantity demanded
What is the inverse relationship between price and
quantity known as? - ...ANSWER...✓✓ The law of demand
What does a fall in the price of a good almost always
cause? - ...ANSWER...✓✓ An increase in the quantity
demanded
What are positive and normative economic thought? -
...ANSWER...✓✓ Two specific aspects of economic
reasoning
What does the law of demand assume? - ...ANSWER...✓✓
That all variables that affect demand, other than price,
remain constant
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.
, 4|Page
What is a demand schedule? - ...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)? - ...ANSWER...✓✓ A change in price - a change
in quantity demanded
What will result in a shift in a demand curve (left or
right)? - ...ANSWER...✓✓ A change in a non-price - a
change in demand
What causes changes in demand (shifts in the demand
curve)? - ...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.
