WGU D089 Objective Assessment (NEW 2025/
2026 Update) Principles of Economics Guide|
Questions & CORRECT ANSWERs | Grade A|
100% Correct (Verified Solutions)
Exam
How are Positive and Normative economics different from each other? - CORRECT ANSWERPositive
economics clearly states and economic issue, and normative economics provides the value-based
solution for the issue.
What are factors of production? - CORRECT ANSWERThe 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
ANSWERBy increasing either the quantity of labor of human capital.
What are two keys to the use of an economy's factors of production? - CORRECT ANSWERTechnology
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
ANSWERPayment
What are factor payments? - CORRECT ANSWERWhat the firm pays for the use of the factors of
production
When human want exceeds the available resources what is the result? - CORRECT ANSWERScarcity
,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 ANSWERNo
How is opportunity cost calculated? - CORRECT ANSWERBy 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
ANSWERAs a constant
What is happening to opportunity cost along a bowed out production possibilities frontier? - CORRECT
ANSWERAn increase in the quantity demanded
What is the inverse relationship between price and quantity known as? - CORRECT ANSWERThe law of
demand
What does a fall in the price of a good almost always cause? - CORRECT ANSWERAn increase in the
quantity demanded
What are positive and normative economic thought? - CORRECT ANSWERTwo specific aspects of
economic reasoning
What does the law of demand assume? - CORRECT ANSWERThat all variables that affect demand, other
than price, remain constant
What is a demand curve? - CORRECT ANSWERa 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 ANSWERA table view of the price-quantity pairings that
compose the demand curve
,What will result in movement along a demand curve (up or down)? - CORRECT ANSWERA change in price
- a change in quantity demanded
What will result in a shift in a demand curve (left or right)? - CORRECT ANSWERA 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 ANSWERThey slope down
from left to right
What is the positive relationship between price and quantity known as? - CORRECT ANSWERThe law of
supply
What does the law of supply assume? - CORRECT ANSWERThat all variables affecting supply, other than
price, remain constant
What does a rise in the price of a good or service increase? - CORRECT ANSWERThe quantity supplied of
that good or service
What does a supply curve depict? - CORRECT ANSWERThe relationship between the price of a good or
service and the quantities companies are willing to sell at those prices
What is a supply schedule? - CORRECT ANSWERA table view of the price-quantity pairing that compose
the supply curve.
What will suppliers do to adjust for non-price changes related to the determinants of supply? - CORRECT
ANSWERShift production
, What will suppliers do to adjust for price-related changes on the supply curve? - CORRECT
ANSWERMove production levels
what are changes in supply (shifts in the supply curve) caused by? - CORRECT ANSWERPrices of inputs,
technology,expectations, number of sellers, and government policies and regulations
What fundamental similarity do nearly all supply curves share? - CORRECT ANSWERThey slope up from
left to right
When does the equilibrium price and equilibrium quantity occur? - CORRECT ANSWERWhere the supply
and demand curves cross.
When does equilibrium occur? - CORRECT ANSWERWhen the quantity demanded is equal to the
quantity supplied
Why would the price be below the equilibrium level? - CORRECT ANSWERThe quantity demanded will
exceed the quantity supplied. -- Excess demand or a shortage will exist.
What is occurring if the price is above the equilibrium level? - CORRECT ANSWERThe quantity supplied
will exceed the quantity demanded. -- Excess supply or a surplus will exist
When does the equilibrium in the market change? - CORRECT ANSWERWhen an event shifts either the
supply or demand curve
What does price elasticity measure? - CORRECT ANSWERThe responsiveness of the quantity demanded
or supplied of a good to a change in its price.
How is price elasticity of demand calculated? - CORRECT ANSWER% change in quantity demand / %
change in price
What are the three ways to describe elasticity? - CORRECT ANSWER- Elastic (Quantity is very responsive)
2026 Update) Principles of Economics Guide|
Questions & CORRECT ANSWERs | Grade A|
100% Correct (Verified Solutions)
Exam
How are Positive and Normative economics different from each other? - CORRECT ANSWERPositive
economics clearly states and economic issue, and normative economics provides the value-based
solution for the issue.
What are factors of production? - CORRECT ANSWERThe 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
ANSWERBy increasing either the quantity of labor of human capital.
What are two keys to the use of an economy's factors of production? - CORRECT ANSWERTechnology
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
ANSWERPayment
What are factor payments? - CORRECT ANSWERWhat the firm pays for the use of the factors of
production
When human want exceeds the available resources what is the result? - CORRECT ANSWERScarcity
,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 ANSWERNo
How is opportunity cost calculated? - CORRECT ANSWERBy 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
ANSWERAs a constant
What is happening to opportunity cost along a bowed out production possibilities frontier? - CORRECT
ANSWERAn increase in the quantity demanded
What is the inverse relationship between price and quantity known as? - CORRECT ANSWERThe law of
demand
What does a fall in the price of a good almost always cause? - CORRECT ANSWERAn increase in the
quantity demanded
What are positive and normative economic thought? - CORRECT ANSWERTwo specific aspects of
economic reasoning
What does the law of demand assume? - CORRECT ANSWERThat all variables that affect demand, other
than price, remain constant
What is a demand curve? - CORRECT ANSWERa 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 ANSWERA table view of the price-quantity pairings that
compose the demand curve
,What will result in movement along a demand curve (up or down)? - CORRECT ANSWERA change in price
- a change in quantity demanded
What will result in a shift in a demand curve (left or right)? - CORRECT ANSWERA 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 ANSWERThey slope down
from left to right
What is the positive relationship between price and quantity known as? - CORRECT ANSWERThe law of
supply
What does the law of supply assume? - CORRECT ANSWERThat all variables affecting supply, other than
price, remain constant
What does a rise in the price of a good or service increase? - CORRECT ANSWERThe quantity supplied of
that good or service
What does a supply curve depict? - CORRECT ANSWERThe relationship between the price of a good or
service and the quantities companies are willing to sell at those prices
What is a supply schedule? - CORRECT ANSWERA table view of the price-quantity pairing that compose
the supply curve.
What will suppliers do to adjust for non-price changes related to the determinants of supply? - CORRECT
ANSWERShift production
, What will suppliers do to adjust for price-related changes on the supply curve? - CORRECT
ANSWERMove production levels
what are changes in supply (shifts in the supply curve) caused by? - CORRECT ANSWERPrices of inputs,
technology,expectations, number of sellers, and government policies and regulations
What fundamental similarity do nearly all supply curves share? - CORRECT ANSWERThey slope up from
left to right
When does the equilibrium price and equilibrium quantity occur? - CORRECT ANSWERWhere the supply
and demand curves cross.
When does equilibrium occur? - CORRECT ANSWERWhen the quantity demanded is equal to the
quantity supplied
Why would the price be below the equilibrium level? - CORRECT ANSWERThe quantity demanded will
exceed the quantity supplied. -- Excess demand or a shortage will exist.
What is occurring if the price is above the equilibrium level? - CORRECT ANSWERThe quantity supplied
will exceed the quantity demanded. -- Excess supply or a surplus will exist
When does the equilibrium in the market change? - CORRECT ANSWERWhen an event shifts either the
supply or demand curve
What does price elasticity measure? - CORRECT ANSWERThe responsiveness of the quantity demanded
or supplied of a good to a change in its price.
How is price elasticity of demand calculated? - CORRECT ANSWER% change in quantity demand / %
change in price
What are the three ways to describe elasticity? - CORRECT ANSWER- Elastic (Quantity is very responsive)
