PRE-ASSESSMENT: MACROECONOMICS PEXO | 2022 UPDATE

According to the production possibilities curve model, as you increase the production of one good, what will happen to the sacrifices ofthe alternate good? YOUR ANSWER CORRECT ANSWER They will steadily increase. They will steadily decrease. They will remain the same. They will gradually disappear. 2. A farmer fully utilizes his resources to produce cauliflower and kale. As the farmer produces more cauliflower, he has fewer resources available to produce kale. Which curve is illustrated in this scenario? YOUR ANSWER CORRECT ANSWER Production possibilities curve Aggregate supply curve Aggregate demand curve Business cycle 3. What are the main foci of economics? YOUR ANSWER CORRECT ANSWER 6/6/2021 WGU Student Portal | Coaching Report YOUR ANSWER CORRECT ANSWER Consumption, production, and use of renewable resources Consumption, production, and use of scarce resources Consumption, production, and use of financial resources Consumption, production, and use of abundant resources 4. 6/6/2021 WGU Student Portal | Coaching Report Study the two-sector circular-flow diagram. Classify each statement as either a flow of resources or a flow of dollars. Answer options may be used more than once or not at all. Select your answers from the pull-down list. YOUR ANSWER CORRECT ANSWER Households provide productive resources to firms. Flow of resources Flow of resources Households buy consumer products from firms. Flow of dollars Flow of dollars Firms sell products to households. Flow of dollars Flow of dollars Households supply labor to firms. Flow of resources Flow of resources 5. Florence could earn an annual salary of $70,000 as a financial advisor or $60,000 as a bank manager. Currently, Florence is a teacher and earns an annual salary of $35,000. Whatis Florence’s opportunity costfor choosing to be a teacher instead of a financial advisor? YOUR ANSWER CORRECT ANSWER $20,000 $35,000 $60,000 $70,000 6. Florence is a teacher and earns $35,000 a year. Her spouse is a part-time IT specialist who earns $45,000 a year. Florence and her spouse decide that one of them should quit work and become a stay-at-home parent. Based on the principle of comparative advantage, who should be the full-time, stay-at-home parent? 6/6/2021 WGU Student Portal | Coaching Report YOUR ANSWER CORRECT ANSWER Florence should stay home, since she has a lower opportunity cost. Her spouse should stay at home, since Florence can potentially earn more. Her spouse should stay at home, since Florence only makes $35,000. Neither; they should both continue working. 7. Referring to the three economic questions (what, how, and for whom), in a market system, by whom are these questions determined? YOUR ANSWER CORRECT ANSWER The culture’s tradition The buyers and sellers The central authority The market itself 8. In the car manufacturing