Wgu D089 Latest Exam Principles Of Economics Exam Questions And
Correct Answers | Latest Version | Already Graded A+ | Just Released
How are Positive and Normative economics different from each other? - (CORRECT ANSWER)Positive
economics clearly states and economic issue, and normative economics provides the value-based
solution for the issue.
What are factors of production? - (CORRECT ANSWER)The resources the economy has available to
produce goods and services
How can Labor's contribution to an economy's output of goods and services be increased? - (CORRECT
ANSWER)By increasing either the quantity of labor of human capital.
What are two keys to the use of an economy's factors of production? - (CORRECT ANSWER)Technology
and, in the case of a market economic system, the efforts of entrepreneurs
For every factor of production (or input) what is there an associated factor of? - (CORRECT
ANSWER)Payment
What are factor payments? - (CORRECT ANSWER)What the firm pays for the use of the factors of
production
When human want exceeds the available resources what is the result? - (CORRECT ANSWER)Scarcity
If the inputs of production are underutilized, is a decrease in production of the other good required
when increasing production to the point that the output combinations sit on the production possibilities
frontier? - (CORRECT ANSWER)No
How is opportunity cost calculated? - (CORRECT ANSWER)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 possibilities frontier? - (CORRECT
ANSWER)As a constant
1
,What is happening to opportunity cost along a bowed out production possibilities frontier? - (CORRECT
ANSWER)An increase in the quantity demanded
What is the inverse relationship between price and quantity known as? - (CORRECT ANSWER)The law of
demand
What does a fall in the price of a good almost always cause? - (CORRECT ANSWER)An increase in the
quantity demanded
What are positive and normative economic thought? - (CORRECT ANSWER)Two specific aspects of
economic reasoning
What does the law of demand assume? - (CORRECT ANSWER)That all variables that affect demand,
other than price, remain constant
What is a demand curve? - (CORRECT ANSWER)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? - (CORRECT ANSWER)A table view of the price-quantity pairings that
compose the demand curve
What will result in movement along a demand curve (up or down)? - (CORRECT ANSWER)A change in
price - a change in quantity demanded
What will result in a shift in a demand curve (left or right)? - (CORRECT ANSWER)A change in a non-price
- a change in demand
What causes changes in demand (shifts in the demand curve)? - (CORRECT ANSWER)- Changes in
consumer income, tastes, and preferences
2
, - 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 share? - (CORRECT ANSWER)They slope down
from left to right
What is the positive relationship between price and quantity known as? - (CORRECT ANSWER)The law of
supply
What does the law of supply assume? - (CORRECT ANSWER)That all variables affecting supply, other
than price, remain constant
What does a rise in the price of a good or service increase? - (CORRECT ANSWER)The quantity supplied
of that good or service
What does a supply curve depict? - (CORRECT ANSWER)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? - (CORRECT ANSWER)A table view of the price-quantity pairing that compose
the supply curve.
What will suppliers do to adjust for non-price changes related to the determinants of supply? -
(CORRECT ANSWER)Shift production
What will suppliers do to adjust for price-related changes on the supply curve? - (CORRECT
ANSWER)Move production levels
3
Correct Answers | Latest Version | Already Graded A+ | Just Released
How are Positive and Normative economics different from each other? - (CORRECT ANSWER)Positive
economics clearly states and economic issue, and normative economics provides the value-based
solution for the issue.
What are factors of production? - (CORRECT ANSWER)The resources the economy has available to
produce goods and services
How can Labor's contribution to an economy's output of goods and services be increased? - (CORRECT
ANSWER)By increasing either the quantity of labor of human capital.
What are two keys to the use of an economy's factors of production? - (CORRECT ANSWER)Technology
and, in the case of a market economic system, the efforts of entrepreneurs
For every factor of production (or input) what is there an associated factor of? - (CORRECT
ANSWER)Payment
What are factor payments? - (CORRECT ANSWER)What the firm pays for the use of the factors of
production
When human want exceeds the available resources what is the result? - (CORRECT ANSWER)Scarcity
If the inputs of production are underutilized, is a decrease in production of the other good required
when increasing production to the point that the output combinations sit on the production possibilities
frontier? - (CORRECT ANSWER)No
How is opportunity cost calculated? - (CORRECT ANSWER)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 possibilities frontier? - (CORRECT
ANSWER)As a constant
1
,What is happening to opportunity cost along a bowed out production possibilities frontier? - (CORRECT
ANSWER)An increase in the quantity demanded
What is the inverse relationship between price and quantity known as? - (CORRECT ANSWER)The law of
demand
What does a fall in the price of a good almost always cause? - (CORRECT ANSWER)An increase in the
quantity demanded
What are positive and normative economic thought? - (CORRECT ANSWER)Two specific aspects of
economic reasoning
What does the law of demand assume? - (CORRECT ANSWER)That all variables that affect demand,
other than price, remain constant
What is a demand curve? - (CORRECT ANSWER)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? - (CORRECT ANSWER)A table view of the price-quantity pairings that
compose the demand curve
What will result in movement along a demand curve (up or down)? - (CORRECT ANSWER)A change in
price - a change in quantity demanded
What will result in a shift in a demand curve (left or right)? - (CORRECT ANSWER)A change in a non-price
- a change in demand
What causes changes in demand (shifts in the demand curve)? - (CORRECT ANSWER)- Changes in
consumer income, tastes, and preferences
2
, - 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 share? - (CORRECT ANSWER)They slope down
from left to right
What is the positive relationship between price and quantity known as? - (CORRECT ANSWER)The law of
supply
What does the law of supply assume? - (CORRECT ANSWER)That all variables affecting supply, other
than price, remain constant
What does a rise in the price of a good or service increase? - (CORRECT ANSWER)The quantity supplied
of that good or service
What does a supply curve depict? - (CORRECT ANSWER)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? - (CORRECT ANSWER)A table view of the price-quantity pairing that compose
the supply curve.
What will suppliers do to adjust for non-price changes related to the determinants of supply? -
(CORRECT ANSWER)Shift production
What will suppliers do to adjust for price-related changes on the supply curve? - (CORRECT
ANSWER)Move production levels
3
