WGU D089 PA #1 EXAM WITH |\ |\ |\ |\ |\ |\
CORRECT ANSWERS |\
Which questions is answered when a society decides how to
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
distribute its scarce resources? |\ |\ |\
What, How, and for whom to produce goods and services
|\ |\ |\ |\ |\ |\ |\ |\ |\
A local government is making public policy decisions about
|\ |\ |\ |\ |\ |\ |\ |\ |\
spending funds. The residents have differing opinions on whether
|\ |\ |\ |\ |\ |\ |\ |\
the funds should be used for road repairs, school expansion,
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
health care increases or construction of a senior center. The local
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
government must decide the priority.
|\ |\ |\ |\ |\
Which economic question is this decision an example of?
|\ |\ |\ |\ |\ |\ |\ |\
What to produce|\ |\
A newspaper is trying to help citizens understand economic
|\ |\ |\ |\ |\ |\ |\ |\ |\
principle
Which misconception should the article address?
|\ |\ |\ |\ |\
Increasing the money supply raises the standard of living for
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
consumers in the long run |\ |\ |\ |\
Which scenario covers a topic included in microeconomics?
|\ |\ |\ |\ |\ |\ |\
,As a result of hard freeze, the price of cherries increase
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
What accurately characterizes capital?
|\ |\ |\
It can be in the form of intellectual discoveries
|\ |\ |\ |\ |\ |\ |\ |\
Why is the circular flow model used?
|\ |\ |\ |\ |\ |\
To describe the interaction of businesses and households in
|\ |\ |\ |\ |\ |\ |\ |\ |\
markets
What is the result of increasing opportunity costs?
|\ |\ |\ |\ |\ |\ |\
to produce more of one good, the economy gives up more and
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
more of other goods
|\ |\ |\
How would a production possibility frontier be drawn for an
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
economy that produces two goods with homogeneous resources?
|\ |\ |\ |\ |\ |\ |\
As a constant slope, downward from left to right
|\ |\ |\ |\ |\ |\ |\ |\
A company is operating at a point insides its production
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
possibility frontier. |\
Which conclusion is accurate about this company?
|\ |\ |\ |\ |\ |\
, Resources of the company are being inefficiently utilized
|\ |\ |\ |\ |\ |\ |\
A county produces two goods (A and B) and currently operates
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
on the bowed out production possibilities frontier.
|\ |\ |\ |\ |\ |\
What is the relationship between productions of Good A and
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
Good B? |\
IF production of Good A increases, then production of Good B will
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
decrease
A local farm grows apples and oranges. Production Possibilities
|\ |\ |\ |\ |\ |\ |\ |\ |\
for this farm are provided in the following figure:
|\ |\ |\ |\ |\ |\ |\ |\
Assume that this farm operates at option B:
|\ |\ |\ |\ |\ |\ |\
What happens to the production of apples and oranges if the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
farm decides to move to option D?
|\ |\ |\ |\ |\ |\
Production of apples will decrease by 50 pounds and production
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
of oranges will decrease by 45 pounds.
|\ |\ |\ |\ |\ |\
CORRECT ANSWERS |\
Which questions is answered when a society decides how to
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
distribute its scarce resources? |\ |\ |\
What, How, and for whom to produce goods and services
|\ |\ |\ |\ |\ |\ |\ |\ |\
A local government is making public policy decisions about
|\ |\ |\ |\ |\ |\ |\ |\ |\
spending funds. The residents have differing opinions on whether
|\ |\ |\ |\ |\ |\ |\ |\
the funds should be used for road repairs, school expansion,
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
health care increases or construction of a senior center. The local
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
government must decide the priority.
|\ |\ |\ |\ |\
Which economic question is this decision an example of?
|\ |\ |\ |\ |\ |\ |\ |\
What to produce|\ |\
A newspaper is trying to help citizens understand economic
|\ |\ |\ |\ |\ |\ |\ |\ |\
principle
Which misconception should the article address?
|\ |\ |\ |\ |\
Increasing the money supply raises the standard of living for
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
consumers in the long run |\ |\ |\ |\
Which scenario covers a topic included in microeconomics?
|\ |\ |\ |\ |\ |\ |\
,As a result of hard freeze, the price of cherries increase
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
What accurately characterizes capital?
|\ |\ |\
It can be in the form of intellectual discoveries
|\ |\ |\ |\ |\ |\ |\ |\
Why is the circular flow model used?
|\ |\ |\ |\ |\ |\
To describe the interaction of businesses and households in
|\ |\ |\ |\ |\ |\ |\ |\ |\
markets
What is the result of increasing opportunity costs?
|\ |\ |\ |\ |\ |\ |\
to produce more of one good, the economy gives up more and
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
more of other goods
|\ |\ |\
How would a production possibility frontier be drawn for an
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
economy that produces two goods with homogeneous resources?
|\ |\ |\ |\ |\ |\ |\
As a constant slope, downward from left to right
|\ |\ |\ |\ |\ |\ |\ |\
A company is operating at a point insides its production
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
possibility frontier. |\
Which conclusion is accurate about this company?
|\ |\ |\ |\ |\ |\
, Resources of the company are being inefficiently utilized
|\ |\ |\ |\ |\ |\ |\
A county produces two goods (A and B) and currently operates
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
on the bowed out production possibilities frontier.
|\ |\ |\ |\ |\ |\
What is the relationship between productions of Good A and
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
Good B? |\
IF production of Good A increases, then production of Good B will
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
decrease
A local farm grows apples and oranges. Production Possibilities
|\ |\ |\ |\ |\ |\ |\ |\ |\
for this farm are provided in the following figure:
|\ |\ |\ |\ |\ |\ |\ |\
Assume that this farm operates at option B:
|\ |\ |\ |\ |\ |\ |\
What happens to the production of apples and oranges if the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
farm decides to move to option D?
|\ |\ |\ |\ |\ |\
Production of apples will decrease by 50 pounds and production
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
of oranges will decrease by 45 pounds.
|\ |\ |\ |\ |\ |\
