WGU C718 Microeconomics OBJECTIVE
ASSESSMENT ACTUAL EXAM 2025/2026
QUESTIONS WITH VERIFIED CORRECT
SOLUTIONS || 100% GUARANTEED PASS
<BRAND NEW VERSION>
1. Change in supply - ANSWER ✓ a shift in the supply curve (the supply curve
moves either to the right or the left) Never caused by a change in price!
2. Choice at the margin - ANSWER ✓ a decision to do a little more or little
less of something (more of one thing means less of the other)
3. Circular flow diagram - ANSWER ✓ a diagram that views the economy as
consisting of households and firms interacting in a goods and services
market and a factor market
4. Comparative advantage - ANSWER ✓ when a country (or person) has a
lower opportunity cost per unit of production
5. Complements - ANSWER ✓ two goods for which an increase in price of
one decreases the demand for the other
6. Scarcity - ANSWER ✓ The inability to satisfy everyone's wants, in a world
with limited resources.
7. Microeconomics - ANSWER ✓ Study of economics that focuses on the
choices made by individuals and businesses.
,8. Macroeconomics - ANSWER ✓ Study of economics that is concerned with
the aggregate or total effect, determined by adding across many markets.
9. Unlimited Wants - ANSWER ✓ The idea that human wants is said to be
unlimited because no matter how much people have, they always want more
of something.
10.Opportunity Cost - ANSWER ✓ Denotes the full value of the best
alternative that is given up, or forgone.
11.Marginal Approach - ANSWER ✓ The concept of looking at the effects on
other variables of small increases or decreases in one important variable.
12.Production Possibilities Frontier - ANSWER ✓ A model that shows the
various output combinations of two goods, or groups of goods, that can be
produced.
13.The Four Factors of Production - ANSWER ✓ Labor, Land, Capital,
Entrepreneurship.
14.Labor - ANSWER ✓ One of the four factors of production. Deals
specifically with the physical and mental work of human beings.
15.Wages - ANSWER ✓ Payment labor receives for its productive services.
16.Human Capital - ANSWER ✓ The development of labor skills as an
investment.
17.Land - ANSWER ✓ One of the four factors of production. Specifically, all
natural resources that can be used as an input into production.
18.Rent - ANSWER ✓ The income paid for land.
19.Capital - ANSWER ✓ One of the four factors of production. Specifically,
any asset that is used to produce goods or services.
20.Interest - ANSWER ✓ Payments to capital.
,21.Entrepreneurship - ANSWER ✓ One of the four factors of production. The
concept of combining the other productive resources to produce goods and
services, take risks and introduce new methods and new products.
22.Market - ANSWER ✓ Any setting in which buyers and sellers meet to
exchange goods, services, or productive resources.
23.Comparative Economic Systems - ANSWER ✓ A method of classifying
economic systems. Focusing on Traditional, Command, and Market.
24.Traditional Economic System - ANSWER ✓ Answers the economic
question by how they have been answered in the past.
25.Command Economic System - ANSWER ✓ Answers the economic
questions by having a central unit that controls the distribution of resources.
26.Market Economic System - ANSWER ✓ Answers the economic questions
by relying on incentives and the self-interested behavior of individuals to
direct production and consumption through market exchanges.
27.Specialization - ANSWER ✓ The division of labor, means that individuals
will produce more than they intend to consume of one or more items and
will trade the excess for other things they want.
28.Principle of Comparative Advantage - ANSWER ✓ This principle states that
each person, group, or country should specialize in that product or service
for which the opportunity cost of production is lowest.
29.Ceteris Paribus Assumption - ANSWER ✓ The concept that if an economist
changes one variable in a theoretical model the economist then could predict
what would happen if everything else remained constant.
30.Market Demand Curve - ANSWER ✓ A concept that shows what quantities
will be demanded by all consumers in a certain market at various prices.
31.Increase in Demand - ANSWER ✓ Causes the demand curve to shift to the
right.
, 32.Decrease in Demand - ANSWER ✓ Causes the demand curve to shift to the
left.
33.Normal Good - ANSWER ✓ A good for which demand increases as income
increases
34.Inferior Good - ANSWER ✓ a good for which demand increases as income
decreases
35.Complementary Goods - ANSWER ✓ Goods that are jointly consumed.
36.Substitute Goods - ANSWER ✓ Goods that can replace each other.
37.The Law of Supply - ANSWER ✓ The quantity supplied of a good or
service in a given time period is generally positively related to its price.
38.Market Equilibrium - ANSWER ✓ Occurs when the price for which
quantity demanded by consumers is equal to quantity supplied by producers.
39.Market Clearing Price - ANSWER ✓ Another name for Market Equilibrium
40.Transaction Costs - ANSWER ✓ Costs associated with gathering
information about markets (prices and quantities supplied) for consuming or
producing.
41.price controls 2 types - ANSWER ✓ price ceiling(rent control/gas prices
govt imposed)- keeps a price from rising above a certain level. price
floor(min. wage)- keeps price from falling below a certain level. neither
causes demand or supply to change only set limits can cause a different
choice of quantity demanded along a demand curve but DO NOT move the
demand curve. Cause a different choice of quantity along a supply curve, but
not shift the supply curve. CAN NOT change the equilibrium price
42.additional costs of pollution - ANSWER ✓ ex co required to pay 100
pollution each time produces a fridge production becomes more costly and
the entire supply curve shifts up by 100 taking the additional external costs
of pollution into account results in a higher price, a lower quantity of
production, and a lower quantity of pollution.
ASSESSMENT ACTUAL EXAM 2025/2026
QUESTIONS WITH VERIFIED CORRECT
SOLUTIONS || 100% GUARANTEED PASS
<BRAND NEW VERSION>
1. Change in supply - ANSWER ✓ a shift in the supply curve (the supply curve
moves either to the right or the left) Never caused by a change in price!
2. Choice at the margin - ANSWER ✓ a decision to do a little more or little
less of something (more of one thing means less of the other)
3. Circular flow diagram - ANSWER ✓ a diagram that views the economy as
consisting of households and firms interacting in a goods and services
market and a factor market
4. Comparative advantage - ANSWER ✓ when a country (or person) has a
lower opportunity cost per unit of production
5. Complements - ANSWER ✓ two goods for which an increase in price of
one decreases the demand for the other
6. Scarcity - ANSWER ✓ The inability to satisfy everyone's wants, in a world
with limited resources.
7. Microeconomics - ANSWER ✓ Study of economics that focuses on the
choices made by individuals and businesses.
,8. Macroeconomics - ANSWER ✓ Study of economics that is concerned with
the aggregate or total effect, determined by adding across many markets.
9. Unlimited Wants - ANSWER ✓ The idea that human wants is said to be
unlimited because no matter how much people have, they always want more
of something.
10.Opportunity Cost - ANSWER ✓ Denotes the full value of the best
alternative that is given up, or forgone.
11.Marginal Approach - ANSWER ✓ The concept of looking at the effects on
other variables of small increases or decreases in one important variable.
12.Production Possibilities Frontier - ANSWER ✓ A model that shows the
various output combinations of two goods, or groups of goods, that can be
produced.
13.The Four Factors of Production - ANSWER ✓ Labor, Land, Capital,
Entrepreneurship.
14.Labor - ANSWER ✓ One of the four factors of production. Deals
specifically with the physical and mental work of human beings.
15.Wages - ANSWER ✓ Payment labor receives for its productive services.
16.Human Capital - ANSWER ✓ The development of labor skills as an
investment.
17.Land - ANSWER ✓ One of the four factors of production. Specifically, all
natural resources that can be used as an input into production.
18.Rent - ANSWER ✓ The income paid for land.
19.Capital - ANSWER ✓ One of the four factors of production. Specifically,
any asset that is used to produce goods or services.
20.Interest - ANSWER ✓ Payments to capital.
,21.Entrepreneurship - ANSWER ✓ One of the four factors of production. The
concept of combining the other productive resources to produce goods and
services, take risks and introduce new methods and new products.
22.Market - ANSWER ✓ Any setting in which buyers and sellers meet to
exchange goods, services, or productive resources.
23.Comparative Economic Systems - ANSWER ✓ A method of classifying
economic systems. Focusing on Traditional, Command, and Market.
24.Traditional Economic System - ANSWER ✓ Answers the economic
question by how they have been answered in the past.
25.Command Economic System - ANSWER ✓ Answers the economic
questions by having a central unit that controls the distribution of resources.
26.Market Economic System - ANSWER ✓ Answers the economic questions
by relying on incentives and the self-interested behavior of individuals to
direct production and consumption through market exchanges.
27.Specialization - ANSWER ✓ The division of labor, means that individuals
will produce more than they intend to consume of one or more items and
will trade the excess for other things they want.
28.Principle of Comparative Advantage - ANSWER ✓ This principle states that
each person, group, or country should specialize in that product or service
for which the opportunity cost of production is lowest.
29.Ceteris Paribus Assumption - ANSWER ✓ The concept that if an economist
changes one variable in a theoretical model the economist then could predict
what would happen if everything else remained constant.
30.Market Demand Curve - ANSWER ✓ A concept that shows what quantities
will be demanded by all consumers in a certain market at various prices.
31.Increase in Demand - ANSWER ✓ Causes the demand curve to shift to the
right.
, 32.Decrease in Demand - ANSWER ✓ Causes the demand curve to shift to the
left.
33.Normal Good - ANSWER ✓ A good for which demand increases as income
increases
34.Inferior Good - ANSWER ✓ a good for which demand increases as income
decreases
35.Complementary Goods - ANSWER ✓ Goods that are jointly consumed.
36.Substitute Goods - ANSWER ✓ Goods that can replace each other.
37.The Law of Supply - ANSWER ✓ The quantity supplied of a good or
service in a given time period is generally positively related to its price.
38.Market Equilibrium - ANSWER ✓ Occurs when the price for which
quantity demanded by consumers is equal to quantity supplied by producers.
39.Market Clearing Price - ANSWER ✓ Another name for Market Equilibrium
40.Transaction Costs - ANSWER ✓ Costs associated with gathering
information about markets (prices and quantities supplied) for consuming or
producing.
41.price controls 2 types - ANSWER ✓ price ceiling(rent control/gas prices
govt imposed)- keeps a price from rising above a certain level. price
floor(min. wage)- keeps price from falling below a certain level. neither
causes demand or supply to change only set limits can cause a different
choice of quantity demanded along a demand curve but DO NOT move the
demand curve. Cause a different choice of quantity along a supply curve, but
not shift the supply curve. CAN NOT change the equilibrium price
42.additional costs of pollution - ANSWER ✓ ex co required to pay 100
pollution each time produces a fridge production becomes more costly and
the entire supply curve shifts up by 100 taking the additional external costs
of pollution into account results in a higher price, a lower quantity of
production, and a lower quantity of pollution.
