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WESTERN GOVERNORS UNIVERSITY (WGU) D089
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Principles of Economics
WGU · D089 · PRINCIPLES OF ECONOMICS
, D089 Principles of Economics · Question Bank Page 2
1. A chamber of commerce workshop turns to scarcity. Four statements are presented, but only one matches
standard principles-of-economics theory. Which statement is correct Select the option that is accurate,
complete, and free of common misconceptions. Compare each choice against the course definition before
selecting.
A) Scarcity vanishes automatically at high income levels.
B) Markets abolish scarcity permanently once established.
C) Scarcity is only a temporary shelf shortage at a fixed price.
D) Scarcity arises because limited resources confront unlimited wants, requiring choice.
Correct Answer: D
Rationale: The right answer is that scarcity means limited resources cannot cover every want, so choices are
forced. It is not the same as a temporary empty shelf, and higher income does not erase the need to choose.
Markets help allocate scarce resources; they do not abolish scarcity itself.
2. Two classmates disagree about opportunity cost while reviewing for an exam. Their notes mix partial
truths with common category errors. Which option reflects the accepted definition Select the option that is
accurate, complete, and free of common misconceptions. Reject options that overgeneralize beyond what
the theory claims.
A) Time costs are excluded from opportunity-cost accounting.
B) Opportunity cost is the value of the next-best alternative forgone when a choice is made.
C) Free goods have zero opportunity cost in all cases.
D) Opportunity cost equals only out-of-pocket cash expenses.
Correct Answer: B
Rationale: Opportunity cost is whatever you give up when you pick one option over the next best
one—including time, not only cash. A free ticket still costs the afternoon you could have used elsewhere.
Focusing only on money paid understates the true trade-off.
WESTERN GOVERNORS UNIVERSITY (WGU) D089
100% VERIFIED PREP | A+ GUARANTEE
Principles of Economics
WGU · D089 · PRINCIPLES OF ECONOMICS
, D089 Principles of Economics · Question Bank Page 2
1. A chamber of commerce workshop turns to scarcity. Four statements are presented, but only one matches
standard principles-of-economics theory. Which statement is correct Select the option that is accurate,
complete, and free of common misconceptions. Compare each choice against the course definition before
selecting.
A) Scarcity vanishes automatically at high income levels.
B) Markets abolish scarcity permanently once established.
C) Scarcity is only a temporary shelf shortage at a fixed price.
D) Scarcity arises because limited resources confront unlimited wants, requiring choice.
Correct Answer: D
Rationale: The right answer is that scarcity means limited resources cannot cover every want, so choices are
forced. It is not the same as a temporary empty shelf, and higher income does not erase the need to choose.
Markets help allocate scarce resources; they do not abolish scarcity itself.
2. Two classmates disagree about opportunity cost while reviewing for an exam. Their notes mix partial
truths with common category errors. Which option reflects the accepted definition Select the option that is
accurate, complete, and free of common misconceptions. Reject options that overgeneralize beyond what
the theory claims.
A) Time costs are excluded from opportunity-cost accounting.
B) Opportunity cost is the value of the next-best alternative forgone when a choice is made.
C) Free goods have zero opportunity cost in all cases.
D) Opportunity cost equals only out-of-pocket cash expenses.
Correct Answer: B
Rationale: Opportunity cost is whatever you give up when you pick one option over the next best
one—including time, not only cash. A free ticket still costs the afternoon you could have used elsewhere.
Focusing only on money paid understates the true trade-off.
