D089 Principles of Economics (WGU) Exam
2026/2027 | Comprehensive Study Guide |
Real Exam Q&A | 100% Accurate
Which type of economy is characterized by a government that plans and controls
all economic activity? - correct answer-Command
Correct! A command economy is a centralized economic system in which all
economic decisions are made by the nation's government.
What is an example of a normative economic statement? - correct 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? - correct 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? - correct 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? - correct 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? - correct
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? - correct
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? - correct 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? - correct 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.
2026/2027 | Comprehensive Study Guide |
Real Exam Q&A | 100% Accurate
Which type of economy is characterized by a government that plans and controls
all economic activity? - correct answer-Command
Correct! A command economy is a centralized economic system in which all
economic decisions are made by the nation's government.
What is an example of a normative economic statement? - correct 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? - correct 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? - correct 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? - correct 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? - correct
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? - correct
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? - correct 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? - correct 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.
