Principles of Economics - WGU D089 TESTS Questions and Answers
with Verified Solutions | Latest 2026 Update
Q: the industry are price takers. What is the price elasticity of demand for the
bakery's bread?
Answer:
Perfectly elastic Correct! In a perfectly competitive market, the price elasticity of
demand is infinite
Q: A firm is operating in an environment with other firms who differentiate their
products with advertisements. The firm finds that its long-run economic profits
equal zero. Which market environment is this firm operating in?
Answer:
Monopolistic competition Correct! Consumers view products of firms in a
monopolistic competitive market environment as close substitutes with some
differentiation between competitors' products. This enables them to have some
market power, but not enough to prevent driving long-run economic profit to zero.
, Principles of Economics - WGU D089 TESTS Questions and Answers
with Verified Solutions | Latest 2026 Update
Q: The market share of the top four firms was measured, and the concentration ratio
score indicated that a proposed merger would draw the attention of anti-trust
authorities. Which concentration ratio score was calculated?
Answer:
58% Correct! A concentration ratio score of more than 50% would be considered
especially high and would draw the attention of antitrust authorities.
Q: Who is included in the labor force participation rate?
Answer:
Employed persons plus those who are unemployed and actively seeking a job
Correct! The labor force participation rate is the fraction of people who are either
employed or active job seekers.
Q: Which element is included in the calculation for government spending as a
component of gross domestic product (GDP)?
Answer:
New highway construction Correct! Building a new highway is considered a good or
service expenditure for the calculation of GDP.
with Verified Solutions | Latest 2026 Update
Q: the industry are price takers. What is the price elasticity of demand for the
bakery's bread?
Answer:
Perfectly elastic Correct! In a perfectly competitive market, the price elasticity of
demand is infinite
Q: A firm is operating in an environment with other firms who differentiate their
products with advertisements. The firm finds that its long-run economic profits
equal zero. Which market environment is this firm operating in?
Answer:
Monopolistic competition Correct! Consumers view products of firms in a
monopolistic competitive market environment as close substitutes with some
differentiation between competitors' products. This enables them to have some
market power, but not enough to prevent driving long-run economic profit to zero.
, Principles of Economics - WGU D089 TESTS Questions and Answers
with Verified Solutions | Latest 2026 Update
Q: The market share of the top four firms was measured, and the concentration ratio
score indicated that a proposed merger would draw the attention of anti-trust
authorities. Which concentration ratio score was calculated?
Answer:
58% Correct! A concentration ratio score of more than 50% would be considered
especially high and would draw the attention of antitrust authorities.
Q: Who is included in the labor force participation rate?
Answer:
Employed persons plus those who are unemployed and actively seeking a job
Correct! The labor force participation rate is the fraction of people who are either
employed or active job seekers.
Q: Which element is included in the calculation for government spending as a
component of gross domestic product (GDP)?
Answer:
New highway construction Correct! Building a new highway is considered a good or
service expenditure for the calculation of GDP.
