WGU C718 Full Study Guide Questions | 104 Questions with 100% Correct Answers | Verified | Latest Update | 25 Pages

WGU C718 Full Study Guide Questions | 104 Questions with 100% Correct Answers | Verified | Latest Update | 25 Pages What is the definition of economics? - Answer ️️ -the study of how humans make decisions in the face of scarcity What are economic and accounting profits? - Answer ️️ -Accounting - profit computed using only explicit costs Total revenue - Explicit costs = accounting profit Economic - profit computed using explicit and implicit costs Total revenue - Explicit costs - Implicit costs = Economic profit What are the characteristics of an oligopoly? - Answer ️️ -1) few firms 2) barriers to entry What are the characteristics of monopolistic competition? Give your own example of a monopolistically competitive market. - Answer ️️ -1) large # of firms 2) differentiated products 3) compete on price, quality, and marketing 4) free entry/exit Resturants, furniture stores What are the characteristics or assumptions of the monopoly model? - Answer ️️ -1) price setter 2) no close substitutes 3) barriers of entry What are the characteristics or assumptions of the perfect competition model? - Answer ️️ -1) price taker 2) identical products 3) free entry/exit 4) many buyers/sellers 5) everyone has info on prices Illustrate the concept of a tradeoff using the PPF. - Answer ️️ -moving from one point on the curve to another point Define the concepts of Marginal and Total Utility and give an example. - Answer ️️ -Total utility - the number of units of utility that a consumer gains from consuming a given quantity of a good, service, or activity Marginal utility - The amount by which total utility rises with consumption of an additional unit of a good, service, or activity What are externalities? Give an example of a negative externality and a positive externality. - Answer ️️ -the effect of a market exchange on a third party who is outside or "external" to the exchange negative - hate country music and having to listen to it in the c