WGU D089 PA #1
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1. Which questions is answered when a society decides What, How, and for whom
how to distribute its scarce resources? to produce goods and ser-
vices
2. A local government is making public policy decisions What to produce
about spending funds. The residents have differing
opinions on whether the funds should be used for
road repairs, school expansion, health care increases
or construction of a senior center. The local govern-
ment must decide the priority.
Which economic question is this decision an example
of?
3. A newspaper is trying to help citizens understand eco- Increasing the money sup-
nomic principle ply raises the standard of
Which misconception should the article address? living for consumers in the
long run
4. Which scenario covers a topic included in microeco- As a result of hard freeze,
nomics? the price of cherries in-
crease
5. What accurately characterizes capital? It can be in the form of in-
tellectual discoveries
6. Why is the circular flow model used? To describe the interaction
of businesses and house-
holds in markets
7. What is the result of increasing opportunity costs? to produce more of one
good, the economy gives
up more and more of oth-
er goods
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, WGU D089 PA #1 Q&A
WGU D089 PA #1
Study online at https://quizlet.com/_cspm3l
8. How would a production possibility frontier be drawn As a constant slope, down-
for an economy that produces two goods with homo- ward from left to right
geneous resources?
9. A company is operating at a point insides its produc- Resources of the company
tion possibility frontier. are being inefficiently uti-
Which conclusion is accurate about this company? lized
10. A county produces two goods (A and B) and currently IF production of Good A
operates on the bowed out production possibilities increases, then production
frontier. of Good B will decrease
What is the relationship between productions of Good
A and Good B?
11. A local farm grows apples and oranges. Production Production of apples will
Possibilities for this farm are provided in the following decrease by 50 pounds
figure: and production of or-
anges will decrease by 45
pounds.
Assume that this farm operates at option B:
What happens to the production of apples and or-
anges if the farm decides to move to option D?
12. A group of roommates decides to buy pizza together. The quantity demanded of
The table below shows the quantity of pizza demanded pizza slices will increase by
at different price levels: 10 slices
Demand for pizza after a drop in Price
Price of Pizza Quantity demanded
$0.50 20
$0.75 15
$1.00 10
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