WGU - D089 - PRINCIPLES OF ECONOMICS
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ANSWERS | EXAM PREP | GRADED A+ |
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Updated Questions and Answers | 100% Verified Exam Prep
,How are Positive and Normative economics different from Positive economics clearly states and economic issue, and normative economics
each other? provides the value-based solution for the issue.
What are factors of production? The resources the economy has available to produce goods and services
How can Labor's contribution to an economy's output of By increasing either the quantity of labor of human capital.
goods and services be increased?
What are two keys to the use of an economy's factors of Technology and, in the case of a market economic system, the efforts of entrepreneurs
production?
For every factor of production (or input) what is there an Payment
associated factor of?
What are factor payments? What the firm pays for the use of the factors of production
When human want exceeds the available resources what is the Scarcity
result?
If the inputs of production are underutilized, is a decrease in No
production of the other good required when increasing
production to the point that the output combinations sit on the
production possibilities frontier?
How is opportunity cost calculated? By dividing the amount of a good you have given up by the amount of the good you
have gained.
How does opportunity cost appear along a linear production As a constant
possibilities frontier?
What is happening to opportunity cost along a bowed out An increase in the quantity demanded
production possibilities frontier?
What is the inverse relationship between price and quantity The law of demand
known as?
What does a fall in the price of a good almost always cause? An increase in the quantity demanded
, What are positive and normative economic thought? Two specific aspects of economic reasoning
What does the law of demand assume? That all variables that affect demand, other than price, remain constant
What is a demand curve? a graphical representation depicting the relationship between a good or service's price
and the quantities consumers are willing to buy at those prices.
What is a demand schedule? A table view of the price-quantity pairings that compose the demand curve
What will result in movement along a demand curve (up or A change in price - a change in quantity demanded
down)?
What will result in a shift in a demand curve (left or right)? A change in a non-price - a change in demand
What causes changes in demand (shifts in the demand curve)? - Changes in consumer income, tastes, and preferences
- The size of the population
- prices of other goods such as complements and substitutes
- expectations about the future.
What fundamental similarity do nearly all demand curves They slope down from left to right
share?
What is the positive relationship between price and quantity The law of supply
known as?
What does the law of supply assume? That all variables affecting supply, other than price, remain constant
What does a rise in the price of a good or service increase? The quantity supplied of that good or service
What does a supply curve depict? The relationship between the price of a good or service and the quantities companies
are willing to sell at those prices
What is a supply schedule? A table view of the price-quantity pairing that compose the supply curve.
What will suppliers do to adjust for non-price changes related Shift production
to the determinants of supply?
| STUDY GUIDE | QUESTIONS AND
ANSWERS | EXAM PREP | GRADED A+ |
GUARANTEED SUCCESS
Updated Questions and Answers | 100% Verified Exam Prep
,How are Positive and Normative economics different from Positive economics clearly states and economic issue, and normative economics
each other? provides the value-based solution for the issue.
What are factors of production? The resources the economy has available to produce goods and services
How can Labor's contribution to an economy's output of By increasing either the quantity of labor of human capital.
goods and services be increased?
What are two keys to the use of an economy's factors of Technology and, in the case of a market economic system, the efforts of entrepreneurs
production?
For every factor of production (or input) what is there an Payment
associated factor of?
What are factor payments? What the firm pays for the use of the factors of production
When human want exceeds the available resources what is the Scarcity
result?
If the inputs of production are underutilized, is a decrease in No
production of the other good required when increasing
production to the point that the output combinations sit on the
production possibilities frontier?
How is opportunity cost calculated? By dividing the amount of a good you have given up by the amount of the good you
have gained.
How does opportunity cost appear along a linear production As a constant
possibilities frontier?
What is happening to opportunity cost along a bowed out An increase in the quantity demanded
production possibilities frontier?
What is the inverse relationship between price and quantity The law of demand
known as?
What does a fall in the price of a good almost always cause? An increase in the quantity demanded
, What are positive and normative economic thought? Two specific aspects of economic reasoning
What does the law of demand assume? That all variables that affect demand, other than price, remain constant
What is a demand curve? a graphical representation depicting the relationship between a good or service's price
and the quantities consumers are willing to buy at those prices.
What is a demand schedule? A table view of the price-quantity pairings that compose the demand curve
What will result in movement along a demand curve (up or A change in price - a change in quantity demanded
down)?
What will result in a shift in a demand curve (left or right)? A change in a non-price - a change in demand
What causes changes in demand (shifts in the demand curve)? - Changes in consumer income, tastes, and preferences
- The size of the population
- prices of other goods such as complements and substitutes
- expectations about the future.
What fundamental similarity do nearly all demand curves They slope down from left to right
share?
What is the positive relationship between price and quantity The law of supply
known as?
What does the law of supply assume? That all variables affecting supply, other than price, remain constant
What does a rise in the price of a good or service increase? The quantity supplied of that good or service
What does a supply curve depict? The relationship between the price of a good or service and the quantities companies
are willing to sell at those prices
What is a supply schedule? A table view of the price-quantity pairing that compose the supply curve.
What will suppliers do to adjust for non-price changes related Shift production
to the determinants of supply?
