1 || |P |a |g
|e
WGU - D089 Principles Of Economics
Actual Questions With Verified Answers
Economics-correct-answer-The study of how humans make decisions in the face| | | | | | | | |
of scarcity.
| |
Factors of Production-correct-answer-Describes theninputs used in the
| | | | | |
production of goods or services to make an economic profit.
| | | | | | | | | |
Macroeconomics-correct-answer-A branch of economic dealing with the | | | | | |
performance, structure, behavior and decision making of an economy as a whole.
| | | | | | | | | | |
Microeconomics-correct-answer-A branch of economics that studies the behavior | | | | | | |
of individuals, and firms in making decisions regarding the allocation of scarce
| | | | | | | | | | | |
resources and the interactions among these individuals and firms.
| | | | | | | |
Monopolistic Competition-correct-answer-A type of market with multiple firms
| | | | | | |
selling differentiated products in a market with a low barrier to entry.
| | | | | | | | | | | |
,2 || |P |a |g
|e
-Highly Substitutable
|
- Differentiated by branding | |
- Long run economic profit = 0
| | | | |
- Easy entry and exit
| | |
- Price Makees|
Oligopoly-correct-answer-An economic condition in which a small number of | | | | | | | |
sellers exert control over the market of a commodity.
| | | | | | | | |
- Difficult entry and exit| | |
- Price Maker |
- Short and Long run economic profit
| | | | |
-
Monopoly-correct-answer-A firm that produces a good that has no close | | | | | | | | |
substitute in a market where barrier to entry prevents other firms entering the
| | | | | | | | | | | | |
market.
|
Market Structure-correct-answer-Defines a industry's characteristics in relation to
| | | | | | |
the number of businesses in the industry and how they compete.
| | | | | | | | | | |
,3 || |P |a |g
|e
Incumbent-correct-answer-A firm that is an established player in the market.
| | | | | | | | |
Market Power-correct-answer-The ability to control or raise prices above the
| | | | | | | | |
marginal cost.
| |
Price Taker-correct-answer-A firm in a perfectly competitive market that must
| | | | | | | | |
take the prevailing price as given.
| | | | | |
Differentiated-correct-answer-A product that is different from similar ones.
| | | | | | |
Market Position-correct-answer-The customers perception of a brand or product
| | | | | | | |
in relation to other brands and products.
| | | | | | |
Price Makers-correct-answer-A firm that has the power to set the price, subject to
| | | | | | | | | | | |
the demand curve.
| | |
, 4 || |P |a |g
|e
Economic Rent-correct-answer-Amy payment for a factor of production in excess
| | | | | | | | |
of the minimum required to supply that factor. it is considered excessive payments
| | | | | | | | | | | | |
beyond what is economically necessary.
| | | | |
Barriers to Entry-correct-answer-The legal, technological, or market forces that
| | | | | | | |
may discourage or prevent potential competitors from entering a market.
| | | | | | | | | |
Perfectly Elastic-correct-answer-Describes a situation when any increase in the
| | | | | | | |
price, no matter how small, will cause demand for a good ti drop to zero
| | | | | | | | | | | | | | |
Allocative Efficiency-correct-answer-Producing goods and services demanded by
| | | | | |
consumers at a price that reflects the marginal cost
| | | | | | | | |
Collude-correct-answer-When firms act together to reduce output and keep | | | | | | | |
prices high.
| |
Cartels-correct-answer-A group of firms that collude to produce the monopoly| | | | | | | | |
output and sell at the monopoly price.
| | | | | | |
|e
WGU - D089 Principles Of Economics
Actual Questions With Verified Answers
Economics-correct-answer-The study of how humans make decisions in the face| | | | | | | | |
of scarcity.
| |
Factors of Production-correct-answer-Describes theninputs used in the
| | | | | |
production of goods or services to make an economic profit.
| | | | | | | | | |
Macroeconomics-correct-answer-A branch of economic dealing with the | | | | | |
performance, structure, behavior and decision making of an economy as a whole.
| | | | | | | | | | |
Microeconomics-correct-answer-A branch of economics that studies the behavior | | | | | | |
of individuals, and firms in making decisions regarding the allocation of scarce
| | | | | | | | | | | |
resources and the interactions among these individuals and firms.
| | | | | | | |
Monopolistic Competition-correct-answer-A type of market with multiple firms
| | | | | | |
selling differentiated products in a market with a low barrier to entry.
| | | | | | | | | | | |
,2 || |P |a |g
|e
-Highly Substitutable
|
- Differentiated by branding | |
- Long run economic profit = 0
| | | | |
- Easy entry and exit
| | |
- Price Makees|
Oligopoly-correct-answer-An economic condition in which a small number of | | | | | | | |
sellers exert control over the market of a commodity.
| | | | | | | | |
- Difficult entry and exit| | |
- Price Maker |
- Short and Long run economic profit
| | | | |
-
Monopoly-correct-answer-A firm that produces a good that has no close | | | | | | | | |
substitute in a market where barrier to entry prevents other firms entering the
| | | | | | | | | | | | |
market.
|
Market Structure-correct-answer-Defines a industry's characteristics in relation to
| | | | | | |
the number of businesses in the industry and how they compete.
| | | | | | | | | | |
,3 || |P |a |g
|e
Incumbent-correct-answer-A firm that is an established player in the market.
| | | | | | | | |
Market Power-correct-answer-The ability to control or raise prices above the
| | | | | | | | |
marginal cost.
| |
Price Taker-correct-answer-A firm in a perfectly competitive market that must
| | | | | | | | |
take the prevailing price as given.
| | | | | |
Differentiated-correct-answer-A product that is different from similar ones.
| | | | | | |
Market Position-correct-answer-The customers perception of a brand or product
| | | | | | | |
in relation to other brands and products.
| | | | | | |
Price Makers-correct-answer-A firm that has the power to set the price, subject to
| | | | | | | | | | | |
the demand curve.
| | |
, 4 || |P |a |g
|e
Economic Rent-correct-answer-Amy payment for a factor of production in excess
| | | | | | | | |
of the minimum required to supply that factor. it is considered excessive payments
| | | | | | | | | | | | |
beyond what is economically necessary.
| | | | |
Barriers to Entry-correct-answer-The legal, technological, or market forces that
| | | | | | | |
may discourage or prevent potential competitors from entering a market.
| | | | | | | | | |
Perfectly Elastic-correct-answer-Describes a situation when any increase in the
| | | | | | | |
price, no matter how small, will cause demand for a good ti drop to zero
| | | | | | | | | | | | | | |
Allocative Efficiency-correct-answer-Producing goods and services demanded by
| | | | | |
consumers at a price that reflects the marginal cost
| | | | | | | | |
Collude-correct-answer-When firms act together to reduce output and keep | | | | | | | |
prices high.
| |
Cartels-correct-answer-A group of firms that collude to produce the monopoly| | | | | | | | |
output and sell at the monopoly price.
| | | | | | |
