D089 Principles of Economics OA WGU
Questions with Correct Verified Answers
and SOLUTIONS 2025
Money Back Guarantee --- correct precise answer ---A promise that
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the buyers money will be refunded under certain conditions.
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Warranty --- correct precise answer ---A promise to fix or replace the
| | | | | | | | | | |
good for a certain period of time.
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Service Contract --- correct precise answer ---The buyer pays an extra
| | | | | | | | | |
amount and the seller agrees as specified in the contract to fix
| | | | | | | | | | | |
anything that goes wrong for a set time period.
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Spillovers --- correct precise answer ---Cost of consumption or trade
| | | | | | | | |
that spills over onto other parties.
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Negative Externality --- correct precise answer ---A cost that is
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suffered by a third party as a result of an economic transaction.
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,Positive Externality --- correct precise answer ---Beneficial spillovers
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to a third party or parties.
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Production --- correct precise answer ---The process of combining
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inputs to produce outputs, ideally of value greater than the value of
| | | | | | | | | | | |
the inputs.
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Private Enterprise --- correct precise answer ---The ownership of
| | | | | | | |
business by private individuals.
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Profit --- correct precise answer ---A financial gain, especially the
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difference between the amount earned and the amount spent buying.
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operating , or producing something.
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Firm --- correct precise answer ---A commercial or for profit
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organization, business, government or individual in the business to
| | | | | | | | |
maximize profit. an organization that combines inputs of labor, land
| | | | | | | | | |
and raw or finished component parts to produce outputs.
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Total Cost --- correct precise answer ---The amount a firm pays for
| | | | | | | | | | |
producing and selling its products.
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,Implicit Cost --- correct precise answer ---The opportunity cost of
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resources already owned by the firm and used in business, for
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example, expanding a factory onto land already owned.
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Explicit Cost --- correct precise answer ---Money a firm must pay out
| | | | | | | | | | |
to settle its Bill's and pay its employees.
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Accounting Profit --- correct precise answer ---Total revenues -
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Explicit costs
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Includes appreciation. |
Economic Profit --- correct precise answer ---Total Revenue - (Explicit
| | | | | | | | |
Cost + Implicit Cost)
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Variable Costs --- correct precise answer ---Cost that do change with
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the level of output
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Law of Diminishing Marginal Returns --- correct precise answer ---
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| The decrease in the marginal output of a production process as the
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amount of a single factor of production is incrementally increased,
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while the amount of all other factors of production stay constant.
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, Fixed Costs --- correct precise answer ---Costs that do not change
| | | | | | | | | |
with the quantity of output produced.
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Production Technologies --- correct precise answer ---Alternative
| | | | | |
methods of combining inputs to produce outputs.
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Long Run Average Cost Curve --- correct precise answer ---The lowest
| | | | | | | | | |
possible average cost of production, allowing all the inputs to
| | | | | | | | | |
production to vary so that the firm is choosing its production
| | | | | | | | | | |
technology.
|
SRAC Curves --- correct precise answer ---The average total cost
| | | | | | | | |
curve in the short term. it shows the total of the average fixed costs
| | | | | | | | | | | | | |
and the average variable costs.
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Economies of Scale --- correct precise answer ---A proportionate
| | | | | | | |
saving in costs gained by an increased level of production.
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Constant Returns to Scale --- correct precise answer ---When an
| | | | | | | | |
increase in inputs causes the same proportional increase in output.
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Expanding all inputs proportionally does not change the average cost
| | | | | | | | | |
of production.
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Questions with Correct Verified Answers
and SOLUTIONS 2025
Money Back Guarantee --- correct precise answer ---A promise that
| | | | | | | | |
the buyers money will be refunded under certain conditions.
| | | | | | | | |
Warranty --- correct precise answer ---A promise to fix or replace the
| | | | | | | | | | |
good for a certain period of time.
| | | | | | |
Service Contract --- correct precise answer ---The buyer pays an extra
| | | | | | | | | |
amount and the seller agrees as specified in the contract to fix
| | | | | | | | | | | |
anything that goes wrong for a set time period.
| | | | | | | | |
Spillovers --- correct precise answer ---Cost of consumption or trade
| | | | | | | | |
that spills over onto other parties.
| | | | | |
Negative Externality --- correct precise answer ---A cost that is
| | | | | | | | |
suffered by a third party as a result of an economic transaction.
| | | | | | | | | | | |
,Positive Externality --- correct precise answer ---Beneficial spillovers
| | | | | | |
to a third party or parties.
| | | | | |
Production --- correct precise answer ---The process of combining
| | | | | | | |
inputs to produce outputs, ideally of value greater than the value of
| | | | | | | | | | | |
the inputs.
| |
Private Enterprise --- correct precise answer ---The ownership of
| | | | | | | |
business by private individuals.
| | | |
Profit --- correct precise answer ---A financial gain, especially the
| | | | | | | | |
difference between the amount earned and the amount spent buying.
| | | | | | | | | |
operating , or producing something.
| | | | |
Firm --- correct precise answer ---A commercial or for profit
| | | | | | | | |
organization, business, government or individual in the business to
| | | | | | | | |
maximize profit. an organization that combines inputs of labor, land
| | | | | | | | | |
and raw or finished component parts to produce outputs.
| | | | | | | | |
Total Cost --- correct precise answer ---The amount a firm pays for
| | | | | | | | | | |
producing and selling its products.
| | | | |
,Implicit Cost --- correct precise answer ---The opportunity cost of
| | | | | | | | |
resources already owned by the firm and used in business, for
| | | | | | | | | | |
example, expanding a factory onto land already owned.
| | | | | | | |
Explicit Cost --- correct precise answer ---Money a firm must pay out
| | | | | | | | | | |
to settle its Bill's and pay its employees.
| | | | | | | |
Accounting Profit --- correct precise answer ---Total revenues -
| | | | | | | |
Explicit costs
| |
Includes appreciation. |
Economic Profit --- correct precise answer ---Total Revenue - (Explicit
| | | | | | | | |
Cost + Implicit Cost)
| | | |
Variable Costs --- correct precise answer ---Cost that do change with
| | | | | | | | | |
the level of output
| | | |
Law of Diminishing Marginal Returns --- correct precise answer ---
| | | | | | | | |
| The decrease in the marginal output of a production process as the
| | | | | | | | | | |
amount of a single factor of production is incrementally increased,
| | | | | | | | | |
while the amount of all other factors of production stay constant.
| | | | | | | | | | |
, Fixed Costs --- correct precise answer ---Costs that do not change
| | | | | | | | | |
with the quantity of output produced.
| | | | | |
Production Technologies --- correct precise answer ---Alternative
| | | | | |
methods of combining inputs to produce outputs.
| | | | | | |
Long Run Average Cost Curve --- correct precise answer ---The lowest
| | | | | | | | | |
possible average cost of production, allowing all the inputs to
| | | | | | | | | |
production to vary so that the firm is choosing its production
| | | | | | | | | | |
technology.
|
SRAC Curves --- correct precise answer ---The average total cost
| | | | | | | | |
curve in the short term. it shows the total of the average fixed costs
| | | | | | | | | | | | | |
and the average variable costs.
| | | | |
Economies of Scale --- correct precise answer ---A proportionate
| | | | | | | |
saving in costs gained by an increased level of production.
| | | | | | | | | |
Constant Returns to Scale --- correct precise answer ---When an
| | | | | | | | |
increase in inputs causes the same proportional increase in output.
| | | | | | | | | |
Expanding all inputs proportionally does not change the average cost
| | | | | | | | | |
of production.
| |
