1|Page
WGU D089 OBJECTIVE ASSESSMENT AND PRE-
ASSESSMENT NEWEST 2026 TEST BANK| D089
PRINCIPLES OF ECONOMICS OA & PA EXAM WITH
COMPLETE 550 REAL EXAM QUESTIONS AND
CORRECT VERIFIED ANSWERS/ ALREADY GRADED
A+ (BRAND NEW!!)
What is the name of a table depicting the relationship between the prices
of a product and the quantities that consumers are willing to buy at those
prices?
A) Demand schedule
B) Demand curve
C) Law of demand
D) Demand factors -Correct Answer- Demand schedule
The market price of a product increased by 7%. The absolute value of
the price elasticity of demand for this product is 3.8. What is the percent
of change in quantity demanded?
A) 1.8% decrease
B) 26.6% decrease
C) 73.4% increase
D) 98.2% increase -Correct Answer- 26.6% decrease
pg. 1
,2|Page
The average price of eggs increases from $1.10 to $1.30. In response,
the quantity supplied increases from 220 to 260 eggs. The elasticity of
supply is equal to 1. Which term describes the price elasticity of this
supply?
A) Elastic
B) Inelastic
C) Unit elastic
D) Perfectly inelastic -Correct Answer- Unit elastic
Which type of law causes a price floor?
A) Minimum wage
B) Rent control
C) Automotive warranties
D) Mandatory service contracts -Correct Answer- Minimum wage
A local store sells products that have been imported from a country with
a reputation for producing low quality electronics. To encourage buyers
to purchase the electronic products, the seller offers customers the
opportunity to pay a fee and have any required repairs or replacement
done for free within the next two years.
Which concept is this seller using?
A) Warranty
B) Equilibrium
C) Service contract
pg. 2
,3|Page
D) Money-back guarantee -Correct Answer- Service contract
Which effect is observed along the total cost curve as it becomes
steeper?
A) Diminishing depreciation
B) Diminishing marginal returns
C) Increasing depreciation
D) Increasing marginal returns -Correct Answer- Diminishing marginal
returns
Which type of market is characterized by firms with no market power
for any individual firm?
A) Oligopoly
B) Monopoly
C) Perfect competition
D) Monopolistic competition -Correct Answer- Perfect competition
Generic drugs start appearing after pharmaceutical firms' patents expire.
These generic drugs have the same formulation as name-brand drugs,
but they are priced below name-brand medications. Producing generic
drugs requires a significant capital investment to establish a modern
manufacturing facility and established distribution networks.
What is the market structure for these drugs?
A) Monopoly
pg. 3
, 4|Page
B) Oligopoly
C) Perfect competition
D) Monopolistic competition -Correct Answer- Oligopoly
Which early tool was used to measure the degree of monopoly power in
an industry?
A) Concentration ratio
B) Acquisition
C) Herfindahl-Hirschman Index
D) Cartel -Correct Answer- Concentration ratio
Which element of the circular flow model is supplied by households?
A) Taxes
B) Wages
C) Rents
D) Interest -Correct Answer- Taxes
What is the largest component of gross domestic product (GDP) in the
United States?
A) Consumption
B) Investment
C) Government
D) Exports -Correct Answer- Consumption
pg. 4
WGU D089 OBJECTIVE ASSESSMENT AND PRE-
ASSESSMENT NEWEST 2026 TEST BANK| D089
PRINCIPLES OF ECONOMICS OA & PA EXAM WITH
COMPLETE 550 REAL EXAM QUESTIONS AND
CORRECT VERIFIED ANSWERS/ ALREADY GRADED
A+ (BRAND NEW!!)
What is the name of a table depicting the relationship between the prices
of a product and the quantities that consumers are willing to buy at those
prices?
A) Demand schedule
B) Demand curve
C) Law of demand
D) Demand factors -Correct Answer- Demand schedule
The market price of a product increased by 7%. The absolute value of
the price elasticity of demand for this product is 3.8. What is the percent
of change in quantity demanded?
A) 1.8% decrease
B) 26.6% decrease
C) 73.4% increase
D) 98.2% increase -Correct Answer- 26.6% decrease
pg. 1
,2|Page
The average price of eggs increases from $1.10 to $1.30. In response,
the quantity supplied increases from 220 to 260 eggs. The elasticity of
supply is equal to 1. Which term describes the price elasticity of this
supply?
A) Elastic
B) Inelastic
C) Unit elastic
D) Perfectly inelastic -Correct Answer- Unit elastic
Which type of law causes a price floor?
A) Minimum wage
B) Rent control
C) Automotive warranties
D) Mandatory service contracts -Correct Answer- Minimum wage
A local store sells products that have been imported from a country with
a reputation for producing low quality electronics. To encourage buyers
to purchase the electronic products, the seller offers customers the
opportunity to pay a fee and have any required repairs or replacement
done for free within the next two years.
Which concept is this seller using?
A) Warranty
B) Equilibrium
C) Service contract
pg. 2
,3|Page
D) Money-back guarantee -Correct Answer- Service contract
Which effect is observed along the total cost curve as it becomes
steeper?
A) Diminishing depreciation
B) Diminishing marginal returns
C) Increasing depreciation
D) Increasing marginal returns -Correct Answer- Diminishing marginal
returns
Which type of market is characterized by firms with no market power
for any individual firm?
A) Oligopoly
B) Monopoly
C) Perfect competition
D) Monopolistic competition -Correct Answer- Perfect competition
Generic drugs start appearing after pharmaceutical firms' patents expire.
These generic drugs have the same formulation as name-brand drugs,
but they are priced below name-brand medications. Producing generic
drugs requires a significant capital investment to establish a modern
manufacturing facility and established distribution networks.
What is the market structure for these drugs?
A) Monopoly
pg. 3
, 4|Page
B) Oligopoly
C) Perfect competition
D) Monopolistic competition -Correct Answer- Oligopoly
Which early tool was used to measure the degree of monopoly power in
an industry?
A) Concentration ratio
B) Acquisition
C) Herfindahl-Hirschman Index
D) Cartel -Correct Answer- Concentration ratio
Which element of the circular flow model is supplied by households?
A) Taxes
B) Wages
C) Rents
D) Interest -Correct Answer- Taxes
What is the largest component of gross domestic product (GDP) in the
United States?
A) Consumption
B) Investment
C) Government
D) Exports -Correct Answer- Consumption
pg. 4
