WGU D089 ACTUAL EXAM PAPER
(UPDATED 2026) QUESTIONS WITH
ANSWERS GRADED A+
A production possibility frontier with a bowed shape illustrates
increasing opportunity cost as quantity of an output increases
Opportunity cost represents
The value of the foregone next-best option
Identify concepts studied in microeconomics. Choose two answers.
A consumer's response to a change in the price of bananas; Decisions made by
individual firms
Which of the following are included in the "Ten Principles of Economics"?
People respond to incentives
Which of the following is a disadvantage of a command economy?
Rationing commonly occurs due to poor planning and inability to meet societal demands
The government should lower taxes to decrease the unemployment rate. Select
the term that describes this statement.
Normative
To economists, scarcity means that
unlimited wants cannot be satisfied by limited resources.
If the production possibilities frontier shifts outward to the right, what is being
illustrated?
economic growth
A production possibility frontier with a bowed shape illustrates
, increasing opportunity cost as quantity of an output increases
An increase in supply is illustrated in a supply and demand model by
a rightward shift of the supply curve
In the market for new cars the equilibrium price decreases and the equilibrium
quantity increases. This can be explained by:
An increase in supply caused by an improvement in production technology
The price of milk rises, how will this impact the equilibrium price and quantity in
the market for cereal?
Both equilibrium price and quantity fall.
According to the Law of Supply, what causes the quantity supplied of a good or
service to increase?
An increase in the price of the good
Identify a factor that will cause a decrease in demand for used cars (an inferior
good).
An increase in income
In the market for donuts, what happens when the price of donuts decreases?
The quantity of donuts demanded increases
The price of cheese used to produce pizza increases, how will this affect the
market for pizza?
Supply will decrease, shifting to the left
All of the following are likely to increase the price of an airline ticket except:
Select all that apply.
New airlines enter the market
(UPDATED 2026) QUESTIONS WITH
ANSWERS GRADED A+
A production possibility frontier with a bowed shape illustrates
increasing opportunity cost as quantity of an output increases
Opportunity cost represents
The value of the foregone next-best option
Identify concepts studied in microeconomics. Choose two answers.
A consumer's response to a change in the price of bananas; Decisions made by
individual firms
Which of the following are included in the "Ten Principles of Economics"?
People respond to incentives
Which of the following is a disadvantage of a command economy?
Rationing commonly occurs due to poor planning and inability to meet societal demands
The government should lower taxes to decrease the unemployment rate. Select
the term that describes this statement.
Normative
To economists, scarcity means that
unlimited wants cannot be satisfied by limited resources.
If the production possibilities frontier shifts outward to the right, what is being
illustrated?
economic growth
A production possibility frontier with a bowed shape illustrates
, increasing opportunity cost as quantity of an output increases
An increase in supply is illustrated in a supply and demand model by
a rightward shift of the supply curve
In the market for new cars the equilibrium price decreases and the equilibrium
quantity increases. This can be explained by:
An increase in supply caused by an improvement in production technology
The price of milk rises, how will this impact the equilibrium price and quantity in
the market for cereal?
Both equilibrium price and quantity fall.
According to the Law of Supply, what causes the quantity supplied of a good or
service to increase?
An increase in the price of the good
Identify a factor that will cause a decrease in demand for used cars (an inferior
good).
An increase in income
In the market for donuts, what happens when the price of donuts decreases?
The quantity of donuts demanded increases
The price of cheese used to produce pizza increases, how will this affect the
market for pizza?
Supply will decrease, shifting to the left
All of the following are likely to increase the price of an airline ticket except:
Select all that apply.
New airlines enter the market
