WGU D089 ACTUAL QUESTIONS & ANSWERS (LATEST
UPDATE) 100% GUARANTEE PASS (VERIFIED
ANSWERS)
1. Which statement best defines economics?
A. The study of how governments collect taxes
B. The study of how businesses maximize revenue
C. The study of how people allocate scarce resources among competing wants
D. The study of how financial markets determine stock prices
Correct Answer: C. The study of how people allocate scarce resources among
competing wants
Rationale: Economics examines how individuals, businesses, and governments
make choices when resources are limited relative to wants.
2. What is the fundamental economic problem?
A. Inflation
B. Scarcity
C. Unemployment
D. Recession
Correct Answer: B. Scarcity
Rationale: Scarcity exists because resources are limited while human wants are
effectively unlimited, requiring choices and trade-offs.
3. Which three questions must every economy answer?
A. When, where, and why to produce
B. What, how, and for whom to produce
,C. Who, when, and where to produce
D. How much, how often, and where to produce
Correct Answer: B. What, how, and for whom to produce
Rationale: Every economic system must determine what goods and services to
produce, how to produce them, and who receives them.
4. Which is an example of an opportunity cost?
A. The money already spent on a textbook
B. The value of the next-best alternative forgone
C. The total amount of income earned
D. The price charged by a seller
Correct Answer: B. The value of the next-best alternative forgone
Rationale: Opportunity cost is the value of the next-best alternative sacrificed
when a choice is made.
5. A student spends Saturday studying instead of working a job that would have
paid $120. What is the student's opportunity cost of studying?
A. $0
B. $60
C. $120
D. The cost of textbooks
Correct Answer: C. $120
Rationale: The forgone $120 in wages represents the value of the next-best
alternative.
6. Which factor of production consists primarily of natural resources?
A. Labor
B. Capital
,C. Land
D. Entrepreneurship
Correct Answer: C. Land
Rationale: In economics, land includes natural resources such as water, minerals,
forests, and agricultural land.
7. Which is an example of physical capital?
A. A worker's education
B. A factory machine
C. An entrepreneur's creativity
D. A deposit of iron ore
Correct Answer: B. A factory machine
Rationale: Physical capital consists of manufactured resources used to produce
goods and services, such as machinery, buildings, and equipment.
8. Human capital refers to:
A. Money held by households
B. Natural resources owned by workers
C. Knowledge, skills, and abilities possessed by people
D. Machines used in production
Correct Answer: C. Knowledge, skills, and abilities possessed by people
Rationale: Education, training, experience, and skills increase a person's
productive capacity and constitute human capital.
9. Which statement is positive economics?
A. The government should increase the minimum wage.
B. Higher taxes are unfair.
, C. An increase in the minimum wage may affect the quantity of labor demanded.
D. The government ought to reduce taxes.
Correct Answer: C. An increase in the minimum wage may affect the quantity of
labor demanded.
Rationale: Positive economics describes relationships that can be examined using
evidence rather than making value judgments.
10. Which statement is normative economics?
A. The unemployment rate increased last year.
B. Higher prices generally reduce quantity demanded, holding other factors
constant.
C. The government should reduce income taxes.
D. Real GDP increased during the quarter.
Correct Answer: C. The government should reduce income taxes.
Rationale: Normative economics involves value judgments about what economic
policies or outcomes should occur.
11. What does marginal analysis compare?
A. Total revenue and total profit
B. Additional benefits and additional costs
C. Average income and average spending
D. Imports and exports only
Correct Answer: B. Additional benefits and additional costs
Rationale: Marginal analysis evaluates whether the additional benefit from an
action exceeds its additional cost.
12. A rational decision maker should generally take an action when:
UPDATE) 100% GUARANTEE PASS (VERIFIED
ANSWERS)
1. Which statement best defines economics?
A. The study of how governments collect taxes
B. The study of how businesses maximize revenue
C. The study of how people allocate scarce resources among competing wants
D. The study of how financial markets determine stock prices
Correct Answer: C. The study of how people allocate scarce resources among
competing wants
Rationale: Economics examines how individuals, businesses, and governments
make choices when resources are limited relative to wants.
2. What is the fundamental economic problem?
A. Inflation
B. Scarcity
C. Unemployment
D. Recession
Correct Answer: B. Scarcity
Rationale: Scarcity exists because resources are limited while human wants are
effectively unlimited, requiring choices and trade-offs.
3. Which three questions must every economy answer?
A. When, where, and why to produce
B. What, how, and for whom to produce
,C. Who, when, and where to produce
D. How much, how often, and where to produce
Correct Answer: B. What, how, and for whom to produce
Rationale: Every economic system must determine what goods and services to
produce, how to produce them, and who receives them.
4. Which is an example of an opportunity cost?
A. The money already spent on a textbook
B. The value of the next-best alternative forgone
C. The total amount of income earned
D. The price charged by a seller
Correct Answer: B. The value of the next-best alternative forgone
Rationale: Opportunity cost is the value of the next-best alternative sacrificed
when a choice is made.
5. A student spends Saturday studying instead of working a job that would have
paid $120. What is the student's opportunity cost of studying?
A. $0
B. $60
C. $120
D. The cost of textbooks
Correct Answer: C. $120
Rationale: The forgone $120 in wages represents the value of the next-best
alternative.
6. Which factor of production consists primarily of natural resources?
A. Labor
B. Capital
,C. Land
D. Entrepreneurship
Correct Answer: C. Land
Rationale: In economics, land includes natural resources such as water, minerals,
forests, and agricultural land.
7. Which is an example of physical capital?
A. A worker's education
B. A factory machine
C. An entrepreneur's creativity
D. A deposit of iron ore
Correct Answer: B. A factory machine
Rationale: Physical capital consists of manufactured resources used to produce
goods and services, such as machinery, buildings, and equipment.
8. Human capital refers to:
A. Money held by households
B. Natural resources owned by workers
C. Knowledge, skills, and abilities possessed by people
D. Machines used in production
Correct Answer: C. Knowledge, skills, and abilities possessed by people
Rationale: Education, training, experience, and skills increase a person's
productive capacity and constitute human capital.
9. Which statement is positive economics?
A. The government should increase the minimum wage.
B. Higher taxes are unfair.
, C. An increase in the minimum wage may affect the quantity of labor demanded.
D. The government ought to reduce taxes.
Correct Answer: C. An increase in the minimum wage may affect the quantity of
labor demanded.
Rationale: Positive economics describes relationships that can be examined using
evidence rather than making value judgments.
10. Which statement is normative economics?
A. The unemployment rate increased last year.
B. Higher prices generally reduce quantity demanded, holding other factors
constant.
C. The government should reduce income taxes.
D. Real GDP increased during the quarter.
Correct Answer: C. The government should reduce income taxes.
Rationale: Normative economics involves value judgments about what economic
policies or outcomes should occur.
11. What does marginal analysis compare?
A. Total revenue and total profit
B. Additional benefits and additional costs
C. Average income and average spending
D. Imports and exports only
Correct Answer: B. Additional benefits and additional costs
Rationale: Marginal analysis evaluates whether the additional benefit from an
action exceeds its additional cost.
12. A rational decision maker should generally take an action when:
