WGU C201 | Business Acumen | Chapter 3
questions with complete solutions 2026\2027
A+ Grade
Economics
- correct answer A social science that analyzes the choices people and governments make in
allocating scarce resources.
Microeconomics
- correct answer Study of small economics units, such as an individual consumers,
families, and businesses.
Demand
- correct answer The willingness and ability of buyers to purchase goods and services at different
prices.
Supply
- correct answer The willingness and ability of sellers to provide goods and services for sale at
different prices.
Factors driving demand
- correct answer A demand curve is a graph of the amount of a product buyers will purchase at
different prices under a given set of conditions. Generally, as price go up, demand goes down
and vice versa.
However, the entire curve can shift to the right or left depending on changed conditions. These
changes reflect factors such as customer preferences, number of buyers, buyer's incomes, prices
of substitute goods, prices of complementary goods, and how optimistic or pessimistic future
,expectations become.
Factors driving supply
- correct answer A supply curve graphically shows the relationship between different prices and
the
, quantities sellers will offer for sale, regardless of demand. Generally, as prices rise, the quantity
sellers are willing to produce increases, and vice versa. The entire curve can also shift right or
left depending on such factors as costs or availability of inputs (factors of production), costs of
technologies, taxes, and the number of suppliers.
How demand and supply interact
- correct answer The equilibrium price identifies the prevailing market price and is
found at the intersection of the supply and demand curves.
Capitalism and competition
- correct answer Capitalism (also called market economy or the private enterprise system)
depends on competition. In this kind of economic system, different industries exhibit different
competitive market structures. The four market structures are pure competition, monopolistic
competition, oligopoly, and monopoly.
Planned economies: communism and socialism
- correct answer In a planned economy, the government's control determines business
ownership, profits, and resource allocation to accomplish government goals rather than goals
of individuals. Under communism, all property is shared equally by the people of a community
under the direction of a strong central government. Under socialism, government owns and
operates the major industries.
Mixed market economies
- correct answer In practice, most countries implement mixed market economies: economic
systems that display characteristics of both planned and market economies in varying
degrees.
Flattening the business cycle
- correct answer A nation's economy tends to flow through various stages of a business cycle:
prosperity, recession, depression, and recovery. While the business cycle is normal, many
economists believe that society is capable of preventing future depressions.
Productivity and the nation's GDP
- correct answer Increases in productivity, which is the relationship between the goods and
services produced and the inputs needed to produce them, generally leads to economic growth.
The measure of these goods and services on which productivity is calculated in the Gross
Domestic Product (GDP), defined as the sum of all goods and services produced within a
questions with complete solutions 2026\2027
A+ Grade
Economics
- correct answer A social science that analyzes the choices people and governments make in
allocating scarce resources.
Microeconomics
- correct answer Study of small economics units, such as an individual consumers,
families, and businesses.
Demand
- correct answer The willingness and ability of buyers to purchase goods and services at different
prices.
Supply
- correct answer The willingness and ability of sellers to provide goods and services for sale at
different prices.
Factors driving demand
- correct answer A demand curve is a graph of the amount of a product buyers will purchase at
different prices under a given set of conditions. Generally, as price go up, demand goes down
and vice versa.
However, the entire curve can shift to the right or left depending on changed conditions. These
changes reflect factors such as customer preferences, number of buyers, buyer's incomes, prices
of substitute goods, prices of complementary goods, and how optimistic or pessimistic future
,expectations become.
Factors driving supply
- correct answer A supply curve graphically shows the relationship between different prices and
the
, quantities sellers will offer for sale, regardless of demand. Generally, as prices rise, the quantity
sellers are willing to produce increases, and vice versa. The entire curve can also shift right or
left depending on such factors as costs or availability of inputs (factors of production), costs of
technologies, taxes, and the number of suppliers.
How demand and supply interact
- correct answer The equilibrium price identifies the prevailing market price and is
found at the intersection of the supply and demand curves.
Capitalism and competition
- correct answer Capitalism (also called market economy or the private enterprise system)
depends on competition. In this kind of economic system, different industries exhibit different
competitive market structures. The four market structures are pure competition, monopolistic
competition, oligopoly, and monopoly.
Planned economies: communism and socialism
- correct answer In a planned economy, the government's control determines business
ownership, profits, and resource allocation to accomplish government goals rather than goals
of individuals. Under communism, all property is shared equally by the people of a community
under the direction of a strong central government. Under socialism, government owns and
operates the major industries.
Mixed market economies
- correct answer In practice, most countries implement mixed market economies: economic
systems that display characteristics of both planned and market economies in varying
degrees.
Flattening the business cycle
- correct answer A nation's economy tends to flow through various stages of a business cycle:
prosperity, recession, depression, and recovery. While the business cycle is normal, many
economists believe that society is capable of preventing future depressions.
Productivity and the nation's GDP
- correct answer Increases in productivity, which is the relationship between the goods and
services produced and the inputs needed to produce them, generally leads to economic growth.
The measure of these goods and services on which productivity is calculated in the Gross
Domestic Product (GDP), defined as the sum of all goods and services produced within a
