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WGU - D089 - PRINCIPLES OF
ECONOMICS QUESTIONS AND ANSWERS
2025
How are Positive and Normative economics different from each
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other? - correct answer- Positive economics clearly states and
| | | | | | | | |
economic issue, and normative economics provides the value-
| | | | | | | |
based solution for the issue.
| | | | |
What are factors of production? - correct answer- The resources
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the economy has available to produce goods and services
| | | | | | | | |
How can Labor's contribution to an economy's output of goods and
| | | | | | | | | |
services be increased? - correct answer- By increasing either the
| | | | | | | | | |
quantity of labor of human capital.
| | | | | |
What are two keys to the use of an economy's factors of
| | | | | | | | | | |
production? - correct answer- Technology and, in the case of a
| | | | | | | | | | |
market economic system, the efforts of entrepreneurs
| | | | | | |
For every factor of production (or input) what is there an
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associated factor of? - correct answer- Payment
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,2 | Page
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What are factor payments? - correct answer- What the firm pays
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for the use of the factors of production
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When human want exceeds the available resources what is the
| | | | | | | | |
result? - correct answer- Scarcity
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If the inputs of production are underutilized, is a decrease in
| | | | | | | | | |
production of the other good required when increasing
| | | | | | | |
production to the point that the output combinations sit on the
| | | | | | | | | | |
production possibilities frontier? - correct answer- No
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How is opportunity cost calculated? - correct answer- By dividing
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the amount of a good you have given up by the amount of the good
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you have gained.
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How does opportunity cost appear along a linear production
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possibilities frontier? - correct answer- As a constant
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What is happening to opportunity cost along a bowed out
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production possibilities frontier? - correct answer- An increase in
| | | | | | | | |
the quantity demanded
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,3 | Page
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What is the inverse relationship between price and quantity
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known as? - correct answer- The law of demand
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What does a fall in the price of a good almost always cause? -
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correct answer- An increase in the quantity demanded
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What are positive and normative economic thought? - correct
| | | | | | | |
answer- Two specific aspects of economic reasoning
| | | | | | |
What does the law of demand assume? - correct answer- That all
| | | | | | | | | | |
variables that affect demand, other than price, remain
| | | | | | | |
constant
What is a demand curve? - correct answer- a graphical
| | | | | | | | |
representation depicting the relationship between a good or
| | | | | | | |
service's price and the quantities consumers are willing to buy at
| | | | | | | | | | |
those prices.
| |
What is a demand schedule? - correct answer- A table view of the
| | | | | | | | | | | |
price-quantity pairings that compose the demand curve
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, 4 | Page
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What will result in movement along a demand curve (up or
| | | | | | | | | |
down)? - correct answer- A change in price - a change in quantity
| | | | | | | | | | | | |
demanded
|
What will result in a shift in a demand curve (left or right)? -
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correct answer- A change in a non-price - a change in demand
| | | | | | | | | | | |
What causes changes in demand (shifts in the demand curve)?
| | | | | | | | |
- correct answer- - Changes in consumer income, tastes, and
| | | | | | | |
preferences
|
- The size of the population
| | | |
- prices of other goods such as complements and substitutes
| | | | | | | |
- expectations about the future. | | |
What fundamental similarity do nearly all demand curves share?
| | | | | | | |
- correct answer- They slope down from left to right
| | | | | | | | | |
What is the positive relationship between price and quantity
| | | | | | | |
known as? - correct answer- The law of supply
| | | | | | | | |
| | | | | |
WGU - D089 - PRINCIPLES OF
ECONOMICS QUESTIONS AND ANSWERS
2025
How are Positive and Normative economics different from each
| | | | | | | |
other? - correct answer- Positive economics clearly states and
| | | | | | | | |
economic issue, and normative economics provides the value-
| | | | | | | |
based solution for the issue.
| | | | |
What are factors of production? - correct answer- The resources
| | | | | | | | |
the economy has available to produce goods and services
| | | | | | | | |
How can Labor's contribution to an economy's output of goods and
| | | | | | | | | |
services be increased? - correct answer- By increasing either the
| | | | | | | | | |
quantity of labor of human capital.
| | | | | |
What are two keys to the use of an economy's factors of
| | | | | | | | | | |
production? - correct answer- Technology and, in the case of a
| | | | | | | | | | |
market economic system, the efforts of entrepreneurs
| | | | | | |
For every factor of production (or input) what is there an
| | | | | | | | | |
associated factor of? - correct answer- Payment
| | | | | | |
,2 | Page
| | | | | |
What are factor payments? - correct answer- What the firm pays
| | | | | | | | | |
for the use of the factors of production
| | | | | | | |
When human want exceeds the available resources what is the
| | | | | | | | |
result? - correct answer- Scarcity
| | | | |
If the inputs of production are underutilized, is a decrease in
| | | | | | | | | |
production of the other good required when increasing
| | | | | | | |
production to the point that the output combinations sit on the
| | | | | | | | | | |
production possibilities frontier? - correct answer- No
| | | | | | |
How is opportunity cost calculated? - correct answer- By dividing
| | | | | | | | |
the amount of a good you have given up by the amount of the good
| | | | | | | | | | | | | | |
you have gained.
| | |
How does opportunity cost appear along a linear production
| | | | | | | |
possibilities frontier? - correct answer- As a constant
| | | | | | | |
What is happening to opportunity cost along a bowed out
| | | | | | | | |
production possibilities frontier? - correct answer- An increase in
| | | | | | | | |
the quantity demanded
| | |
,3 | Page
| | | | | |
What is the inverse relationship between price and quantity
| | | | | | | |
known as? - correct answer- The law of demand
| | | | | | | | |
What does a fall in the price of a good almost always cause? -
| | | | | | | | | | | | |
correct answer- An increase in the quantity demanded
| | | | | | | |
What are positive and normative economic thought? - correct
| | | | | | | |
answer- Two specific aspects of economic reasoning
| | | | | | |
What does the law of demand assume? - correct answer- That all
| | | | | | | | | | |
variables that affect demand, other than price, remain
| | | | | | | |
constant
What is a demand curve? - correct answer- a graphical
| | | | | | | | |
representation depicting the relationship between a good or
| | | | | | | |
service's price and the quantities consumers are willing to buy at
| | | | | | | | | | |
those prices.
| |
What is a demand schedule? - correct answer- A table view of the
| | | | | | | | | | | |
price-quantity pairings that compose the demand curve
| | | | | | |
, 4 | Page
| | | | | |
What will result in movement along a demand curve (up or
| | | | | | | | | |
down)? - correct answer- A change in price - a change in quantity
| | | | | | | | | | | | |
demanded
|
What will result in a shift in a demand curve (left or right)? -
| | | | | | | | | | | | |
correct answer- A change in a non-price - a change in demand
| | | | | | | | | | | |
What causes changes in demand (shifts in the demand curve)?
| | | | | | | | |
- correct answer- - Changes in consumer income, tastes, and
| | | | | | | |
preferences
|
- The size of the population
| | | |
- prices of other goods such as complements and substitutes
| | | | | | | |
- expectations about the future. | | |
What fundamental similarity do nearly all demand curves share?
| | | | | | | |
- correct answer- They slope down from left to right
| | | | | | | | | |
What is the positive relationship between price and quantity
| | | | | | | |
known as? - correct answer- The law of supply
| | | | | | | | |
