WGU - D089 COMPREHENSIVE REVIEW
STUDY GUIDE TESTED QUESTIONS 2026
100% CORRECT.
⫸ What is an example of a normative economic statement? Answer:
Marginal tax rates should be lowered on high-income individuals.
Correct! A marginal tax rate is the amount of money an individual
pays in taxes on each additional dollar earned. This statement uses the
word "should", which makes it a value judgment or opinion and a
normative statement.
⫸ Which characteristic is associated with natural resources from a
business perspective? Answer: They exist without human effort.
Correct! Natural resources are found in nature without any human
effort.
⫸ How can the available supply of natural resources be increased?
Answer: Discovering new ways to extract resources
Correct! The discovery of different ways to extract natural resources
can make them more available.
⫸ A ski resort sells tickets online at $70 per ticket. The resort is not
selling many tickets, so it offers a two-for-one opportunity. Which
economic principle is being used? Answer: People respond to
incentives.
, Correct! The incentive of a sale or coupon changed the cost from $70
to $35, making the ski trip more affordable and desirable. This
incentive is what likely changed buyers' behaviors.
⫸ What are the characteristics of the production possibility frontier
graph? Answer: Trade-offs in choices and downward sloping
Correct! The graph of the production possibility frontier reflects
trade-offs in choices and is downward sloping.
⫸ How is scarcity represented on the production possibility frontier?
Answer: By there being attainable and unattainable points
Correct! The production possibility frontier depicts the impact of
scarcity by providing a clear mark between the set of attainable and
unattainable points.
⫸ The government imposes new safety regulations on the production
of gas stoves. What will happen in the market for gas stoves? Answer:
Supply decreases.
Correct! New government regulations on producers will make it more
expensive to produce gas stoves and will decrease supply.
⫸ The price of steel has increased by 5%, which leads to an increase
in quantity supplied by 8%. Which outcome can be concluded from
the demand and supply of steel? Answer: The supply of steel is
elastic.
Correct! Because the quantity supplied increased by more than 5%, it
is reasonable to conclude that the supply of steel is elastic.
STUDY GUIDE TESTED QUESTIONS 2026
100% CORRECT.
⫸ What is an example of a normative economic statement? Answer:
Marginal tax rates should be lowered on high-income individuals.
Correct! A marginal tax rate is the amount of money an individual
pays in taxes on each additional dollar earned. This statement uses the
word "should", which makes it a value judgment or opinion and a
normative statement.
⫸ Which characteristic is associated with natural resources from a
business perspective? Answer: They exist without human effort.
Correct! Natural resources are found in nature without any human
effort.
⫸ How can the available supply of natural resources be increased?
Answer: Discovering new ways to extract resources
Correct! The discovery of different ways to extract natural resources
can make them more available.
⫸ A ski resort sells tickets online at $70 per ticket. The resort is not
selling many tickets, so it offers a two-for-one opportunity. Which
economic principle is being used? Answer: People respond to
incentives.
, Correct! The incentive of a sale or coupon changed the cost from $70
to $35, making the ski trip more affordable and desirable. This
incentive is what likely changed buyers' behaviors.
⫸ What are the characteristics of the production possibility frontier
graph? Answer: Trade-offs in choices and downward sloping
Correct! The graph of the production possibility frontier reflects
trade-offs in choices and is downward sloping.
⫸ How is scarcity represented on the production possibility frontier?
Answer: By there being attainable and unattainable points
Correct! The production possibility frontier depicts the impact of
scarcity by providing a clear mark between the set of attainable and
unattainable points.
⫸ The government imposes new safety regulations on the production
of gas stoves. What will happen in the market for gas stoves? Answer:
Supply decreases.
Correct! New government regulations on producers will make it more
expensive to produce gas stoves and will decrease supply.
⫸ The price of steel has increased by 5%, which leads to an increase
in quantity supplied by 8%. Which outcome can be concluded from
the demand and supply of steel? Answer: The supply of steel is
elastic.
Correct! Because the quantity supplied increased by more than 5%, it
is reasonable to conclude that the supply of steel is elastic.
