D089 PRINCIPLES OF ECONOMICS OA
WGU 2025
VERIFIED SOLUTIONS & CORRECT
ANSWERS
Comprehensive Study Guide for WGU Objective Assessment
Updated for 2025 Exam Cycle
Curated by Economic Education Experts
,Contents
1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2 Basic Economic Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.1 Question 1: Fundamental Economic Questions . . . . . . . . . . . . . . 5
2.2 Question 2: Definition of Economics . . . . . . . . . . . . . . . . . . . . . 5
2.3 Question 3: Scarcity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.4 Question 4: Opportunity Cost . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.5 Question 5: Factors of Production . . . . . . . . . . . . . . . . . . . . . . . 6
2.6 Question 6: Marginal Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.7 Question 7: Thinking at the Margin . . . . . . . . . . . . . . . . . . . . . . 6
2.8 Question 8: Production Possibilities Frontier . . . . . . . . . . . . . . . . 6
2.9 Question 9: Economic Systems . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.10 Question 10: Trade-Offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.11 Question 11: Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.12 Question 12: Economic Models . . . . . . . . . . . . . . . . . . . . . . . . 7
2.13 Question 13: Positive vs. Normative Economics . . . . . . . . . . . . . . 7
2.14 Question 14: Allocative Efficiency . . . . . . . . . . . . . . . . . . . . . . . 8
2.15 Question 15: Comparative Advantage . . . . . . . . . . . . . . . . . . . . 8
2.16 Question 16: Absolute Advantage . . . . . . . . . . . . . . . . . . . . . . . 8
2.17 Question 17: Scarcity and Choice . . . . . . . . . . . . . . . . . . . . . . . 8
2.18 Question 18: Circular Flow Model . . . . . . . . . . . . . . . . . . . . . . . 8
2.19 Question 19: Resource Distribution . . . . . . . . . . . . . . . . . . . . . . 9
2.20 Question 20: Public Policy Decisions . . . . . . . . . . . . . . . . . . . . . 9
2.21 Question 21: Benefits of Trade . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.22 Question 22: Marginal Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.23 Question 23: Market Resource Allocation . . . . . . . . . . . . . . . . . . 9
2.24 Question 24: Economic Growth . . . . . . . . . . . . . . . . . . . . . . . . 9
2.25 Question 25: Opportunity Cost Example . . . . . . . . . . . . . . . . . . . 10
2.26 Question 26: Productive Efficiency . . . . . . . . . . . . . . . . . . . . . . 10
2.27 Question 27: Scarcity Misconception . . . . . . . . . . . . . . . . . . . . . 10
2.28 Question 28: Economic Incentives . . . . . . . . . . . . . . . . . . . . . . 10
2.29 Question 29: Marginal Analysis . . . . . . . . . . . . . . . . . . . . . . . . 10
2.30 Question 30: Production Method Choices . . . . . . . . . . . . . . . . . . 10
2.31 Question 31: Ceteris Paribus . . . . . . . . . . . . . . . . . . . . . . . . . . 11
2.32 Question 32: Economic Trade Benefits . . . . . . . . . . . . . . . . . . . . 11
2.33 Question 33: Specialization . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
2.34 Question 34: Economic Equity . . . . . . . . . . . . . . . . . . . . . . . . . 11
2.35 Question 35: PPF and Unemployment . . . . . . . . . . . . . . . . . . . . 11
3 Microeconomics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.1 Question 36: Microeconomics Definition . . . . . . . . . . . . . . . . . . 12
3.2 Question 37: Law of Demand . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.3 Question 38: Law of Supply . . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.4 Question 39: Market Equilibrium . . . . . . . . . . . . . . . . . . . . . . . 12
3.5 Question 40: Price Elasticity of Demand . . . . . . . . . . . . . . . . . . . 12
3.6 Question 41: Elasticity Formula . . . . . . . . . . . . . . . . . . . . . . . . 13
3.7 Question 42: Substitute Goods . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.8 Question 43: Complementary Goods . . . . . . . . . . . . . . . . . . . . . 13
1
,D089 Principles of Economics OA WGU 2025 July 3, 2025
3.9 Question 44: Supply Shift . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.10 Question 45: Demand Shift . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.11 Question 46: Market Surplus . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.12 Question 47: Market Shortage . . . . . . . . . . . . . . . . . . . . . . . . . 14
3.13 Question 48: Price Ceiling . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
3.14 Question 49: Price Floor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
3.15 Question 50: Consumer Surplus . . . . . . . . . . . . . . . . . . . . . . . . 14
3.16 Question 51: Producer Surplus . . . . . . . . . . . . . . . . . . . . . . . . 14
3.17 Question 52: Normal Goods . . . . . . . . . . . . . . . . . . . . . . . . . . 14
3.18 Question 53: Inferior Goods . . . . . . . . . . . . . . . . . . . . . . . . . . 15
3.19 Question 54: Cross-Price Elasticity . . . . . . . . . . . . . . . . . . . . . . 15
3.20 Question 55: Income Elasticity . . . . . . . . . . . . . . . . . . . . . . . . . 15
3.21 Question 56: Market Failure . . . . . . . . . . . . . . . . . . . . . . . . . . 15
3.22 Question 57: Negative Externalities . . . . . . . . . . . . . . . . . . . . . 15
3.23 Question 58: Public Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
3.24 Question 59: Marginal Utility . . . . . . . . . . . . . . . . . . . . . . . . . 16
3.25 Question 60: Fixed Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
3.26 Question 61: Variable Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
3.27 Question 62: Technology Impact . . . . . . . . . . . . . . . . . . . . . . . 16
3.28 Question 63: Consumer Decision-Making . . . . . . . . . . . . . . . . . . 16
3.29 Question 64: Market Demand . . . . . . . . . . . . . . . . . . . . . . . . . 16
3.30 Question 65: Supply Determinants . . . . . . . . . . . . . . . . . . . . . . 17
3.31 Question 66: Demand Determinants . . . . . . . . . . . . . . . . . . . . . 17
3.32 Question 67: Price Elasticity Types . . . . . . . . . . . . . . . . . . . . . . 17
3.33 Question 68: Total Revenue and Elasticity . . . . . . . . . . . . . . . . . . 17
3.34 Question 69: Externalities Correction . . . . . . . . . . . . . . . . . . . . 17
3.35 Question 70: Law of Diminishing Returns . . . . . . . . . . . . . . . . . . 18
4 Macroeconomics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
4.1 Question 71: Macroeconomics Definition . . . . . . . . . . . . . . . . . . 18
4.2 Question 72: Gross Domestic Product . . . . . . . . . . . . . . . . . . . . 18
4.3 Question 73: Real vs. Nominal GDP . . . . . . . . . . . . . . . . . . . . . . 18
4.4 Question 74: Inflation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
4.5 Question 75: Unemployment Rate . . . . . . . . . . . . . . . . . . . . . . . 19
4.6 Question 76: Types of Unemployment . . . . . . . . . . . . . . . . . . . . 19
4.7 Question 77: Aggregate Demand . . . . . . . . . . . . . . . . . . . . . . . 19
4.8 Question 78: Aggregate Supply . . . . . . . . . . . . . . . . . . . . . . . . 19
4.9 Question 79: Fiscal Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
4.10 Question 80: Monetary Policy . . . . . . . . . . . . . . . . . . . . . . . . . 19
4.11 Question 81: Phillips Curve . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
4.12 Question 82: Money Supply Misconception . . . . . . . . . . . . . . . . . 20
4.13 Question 83: Business Cycle . . . . . . . . . . . . . . . . . . . . . . . . . . 20
4.14 Question 84: Federal Reserve Role . . . . . . . . . . . . . . . . . . . . . . 20
4.15 Question 85: Interest Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
4.16 Question 86: GDP Components . . . . . . . . . . . . . . . . . . . . . . . . 20
4.17 Question 87: Deflation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
4.18 Question 88: Multiplier Effect . . . . . . . . . . . . . . . . . . . . . . . . . 21
4.19 Question 89: Economic Indicators . . . . . . . . . . . . . . . . . . . . . . 21
4.20 Question 90: Budget Deficit . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
4.21 Question 91: National Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Page 2 of 32
, D089 Principles of Economics OA WGU 2025 July 3, 2025
4.22 Question 92: Aggregate Demand Shift . . . . . . . . . . . . . . . . . . . . 21
4.23 Question 93: Aggregate Supply Shift . . . . . . . . . . . . . . . . . . . . . 22
4.24 Question 94: Stagflation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
4.25 Question 95: Monetary Policy Tools . . . . . . . . . . . . . . . . . . . . . 22
4.26 Question 96: Expansionary Fiscal Policy . . . . . . . . . . . . . . . . . . . 22
4.27 Question 97: Contractionary Fiscal Policy . . . . . . . . . . . . . . . . . . 22
4.28 Question 98: Consumer Price Index . . . . . . . . . . . . . . . . . . . . . 22
4.29 Question 99: Cyclical Unemployment . . . . . . . . . . . . . . . . . . . . 23
4.30 Question 100: Economic Growth Impact . . . . . . . . . . . . . . . . . . . 23
4.31 Question 101: Hyperinflation . . . . . . . . . . . . . . . . . . . . . . . . . 23
4.32 Question 102: Fiscal Policy Multiplier . . . . . . . . . . . . . . . . . . . . 23
4.33 Question 103: Money Supply Growth . . . . . . . . . . . . . . . . . . . . . 23
4.34 Question 104: Natural Rate of Unemployment . . . . . . . . . . . . . . . 23
4.35 Question 105: Crowding Out . . . . . . . . . . . . . . . . . . . . . . . . . . 24
5 Market Structures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
5.1 Question 106: Perfect Competition Characteristics . . . . . . . . . . . . 24
5.2 Question 107: Monopoly Definition . . . . . . . . . . . . . . . . . . . . . . 24
5.3 Question 108: Oligopoly Definition . . . . . . . . . . . . . . . . . . . . . . 24
5.4 Question 109: Monopolistic Competition . . . . . . . . . . . . . . . . . . 24
5.5 Question 110: Barriers to Entry . . . . . . . . . . . . . . . . . . . . . . . . 25
5.6 Question 111: Price Discrimination . . . . . . . . . . . . . . . . . . . . . . 25
5.7 Question 112: Market Power . . . . . . . . . . . . . . . . . . . . . . . . . . 25
5.8 Question 113: Perfect Competition Efficiency . . . . . . . . . . . . . . . . 25
5.9 Question 114: Monopoly Inefficiency . . . . . . . . . . . . . . . . . . . . . 25
5.10 Question 115: Oligopoly Collusion . . . . . . . . . . . . . . . . . . . . . . 26
5.11 Question 116: Product Differentiation . . . . . . . . . . . . . . . . . . . . 26
5.12 Question 117: Natural Monopoly . . . . . . . . . . . . . . . . . . . . . . . 26
5.13 Question 118: Antitrust Laws . . . . . . . . . . . . . . . . . . . . . . . . . 26
5.14 Question 119: Market Structure Pricing . . . . . . . . . . . . . . . . . . . 26
5.15 Question 120: Profit Maximization . . . . . . . . . . . . . . . . . . . . . . 26
5.16 Question 121: Economies of Scale . . . . . . . . . . . . . . . . . . . . . . . 27
5.17 Question 122: Diseconomies of Scale . . . . . . . . . . . . . . . . . . . . . 27
5.18 Question 123: Monopoly Regulation . . . . . . . . . . . . . . . . . . . . . 27
5.19 Question 124: Oligopoly Interdependence . . . . . . . . . . . . . . . . . 27
5.20 Question 125: Perfect Competition Entry . . . . . . . . . . . . . . . . . . 27
5.21 Question 126: Monopoly Profit . . . . . . . . . . . . . . . . . . . . . . . . 27
5.22 Question 127: Monopolistic Competition Example . . . . . . . . . . . . 28
5.23 Question 128: Collusion Instability . . . . . . . . . . . . . . . . . . . . . . 28
5.24 Question 129: Price Leadership . . . . . . . . . . . . . . . . . . . . . . . . 28
5.25 Question 130: Deadweight Loss . . . . . . . . . . . . . . . . . . . . . . . . 28
5.26 Question 131: Market Structure Innovation . . . . . . . . . . . . . . . . 28
5.27 Question 132: Monopolistic Competition Profit . . . . . . . . . . . . . . 28
5.28 Question 133: Market Power Example . . . . . . . . . . . . . . . . . . . . 29
5.29 Question 134: Game Theory in Oligopolies . . . . . . . . . . . . . . . . . 29
5.30 Question 135: Monopoly Price Setting . . . . . . . . . . . . . . . . . . . . 29
6 Economic Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
6.1 Question 136: Fiscal Policy Goal . . . . . . . . . . . . . . . . . . . . . . . . 29
6.2 Question 137: Monetary Policy Goal . . . . . . . . . . . . . . . . . . . . . 29
Page 3 of 32
WGU 2025
VERIFIED SOLUTIONS & CORRECT
ANSWERS
Comprehensive Study Guide for WGU Objective Assessment
Updated for 2025 Exam Cycle
Curated by Economic Education Experts
,Contents
1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2 Basic Economic Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.1 Question 1: Fundamental Economic Questions . . . . . . . . . . . . . . 5
2.2 Question 2: Definition of Economics . . . . . . . . . . . . . . . . . . . . . 5
2.3 Question 3: Scarcity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.4 Question 4: Opportunity Cost . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.5 Question 5: Factors of Production . . . . . . . . . . . . . . . . . . . . . . . 6
2.6 Question 6: Marginal Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.7 Question 7: Thinking at the Margin . . . . . . . . . . . . . . . . . . . . . . 6
2.8 Question 8: Production Possibilities Frontier . . . . . . . . . . . . . . . . 6
2.9 Question 9: Economic Systems . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.10 Question 10: Trade-Offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.11 Question 11: Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.12 Question 12: Economic Models . . . . . . . . . . . . . . . . . . . . . . . . 7
2.13 Question 13: Positive vs. Normative Economics . . . . . . . . . . . . . . 7
2.14 Question 14: Allocative Efficiency . . . . . . . . . . . . . . . . . . . . . . . 8
2.15 Question 15: Comparative Advantage . . . . . . . . . . . . . . . . . . . . 8
2.16 Question 16: Absolute Advantage . . . . . . . . . . . . . . . . . . . . . . . 8
2.17 Question 17: Scarcity and Choice . . . . . . . . . . . . . . . . . . . . . . . 8
2.18 Question 18: Circular Flow Model . . . . . . . . . . . . . . . . . . . . . . . 8
2.19 Question 19: Resource Distribution . . . . . . . . . . . . . . . . . . . . . . 9
2.20 Question 20: Public Policy Decisions . . . . . . . . . . . . . . . . . . . . . 9
2.21 Question 21: Benefits of Trade . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.22 Question 22: Marginal Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.23 Question 23: Market Resource Allocation . . . . . . . . . . . . . . . . . . 9
2.24 Question 24: Economic Growth . . . . . . . . . . . . . . . . . . . . . . . . 9
2.25 Question 25: Opportunity Cost Example . . . . . . . . . . . . . . . . . . . 10
2.26 Question 26: Productive Efficiency . . . . . . . . . . . . . . . . . . . . . . 10
2.27 Question 27: Scarcity Misconception . . . . . . . . . . . . . . . . . . . . . 10
2.28 Question 28: Economic Incentives . . . . . . . . . . . . . . . . . . . . . . 10
2.29 Question 29: Marginal Analysis . . . . . . . . . . . . . . . . . . . . . . . . 10
2.30 Question 30: Production Method Choices . . . . . . . . . . . . . . . . . . 10
2.31 Question 31: Ceteris Paribus . . . . . . . . . . . . . . . . . . . . . . . . . . 11
2.32 Question 32: Economic Trade Benefits . . . . . . . . . . . . . . . . . . . . 11
2.33 Question 33: Specialization . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
2.34 Question 34: Economic Equity . . . . . . . . . . . . . . . . . . . . . . . . . 11
2.35 Question 35: PPF and Unemployment . . . . . . . . . . . . . . . . . . . . 11
3 Microeconomics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.1 Question 36: Microeconomics Definition . . . . . . . . . . . . . . . . . . 12
3.2 Question 37: Law of Demand . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.3 Question 38: Law of Supply . . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.4 Question 39: Market Equilibrium . . . . . . . . . . . . . . . . . . . . . . . 12
3.5 Question 40: Price Elasticity of Demand . . . . . . . . . . . . . . . . . . . 12
3.6 Question 41: Elasticity Formula . . . . . . . . . . . . . . . . . . . . . . . . 13
3.7 Question 42: Substitute Goods . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.8 Question 43: Complementary Goods . . . . . . . . . . . . . . . . . . . . . 13
1
,D089 Principles of Economics OA WGU 2025 July 3, 2025
3.9 Question 44: Supply Shift . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.10 Question 45: Demand Shift . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.11 Question 46: Market Surplus . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.12 Question 47: Market Shortage . . . . . . . . . . . . . . . . . . . . . . . . . 14
3.13 Question 48: Price Ceiling . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
3.14 Question 49: Price Floor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
3.15 Question 50: Consumer Surplus . . . . . . . . . . . . . . . . . . . . . . . . 14
3.16 Question 51: Producer Surplus . . . . . . . . . . . . . . . . . . . . . . . . 14
3.17 Question 52: Normal Goods . . . . . . . . . . . . . . . . . . . . . . . . . . 14
3.18 Question 53: Inferior Goods . . . . . . . . . . . . . . . . . . . . . . . . . . 15
3.19 Question 54: Cross-Price Elasticity . . . . . . . . . . . . . . . . . . . . . . 15
3.20 Question 55: Income Elasticity . . . . . . . . . . . . . . . . . . . . . . . . . 15
3.21 Question 56: Market Failure . . . . . . . . . . . . . . . . . . . . . . . . . . 15
3.22 Question 57: Negative Externalities . . . . . . . . . . . . . . . . . . . . . 15
3.23 Question 58: Public Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
3.24 Question 59: Marginal Utility . . . . . . . . . . . . . . . . . . . . . . . . . 16
3.25 Question 60: Fixed Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
3.26 Question 61: Variable Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
3.27 Question 62: Technology Impact . . . . . . . . . . . . . . . . . . . . . . . 16
3.28 Question 63: Consumer Decision-Making . . . . . . . . . . . . . . . . . . 16
3.29 Question 64: Market Demand . . . . . . . . . . . . . . . . . . . . . . . . . 16
3.30 Question 65: Supply Determinants . . . . . . . . . . . . . . . . . . . . . . 17
3.31 Question 66: Demand Determinants . . . . . . . . . . . . . . . . . . . . . 17
3.32 Question 67: Price Elasticity Types . . . . . . . . . . . . . . . . . . . . . . 17
3.33 Question 68: Total Revenue and Elasticity . . . . . . . . . . . . . . . . . . 17
3.34 Question 69: Externalities Correction . . . . . . . . . . . . . . . . . . . . 17
3.35 Question 70: Law of Diminishing Returns . . . . . . . . . . . . . . . . . . 18
4 Macroeconomics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
4.1 Question 71: Macroeconomics Definition . . . . . . . . . . . . . . . . . . 18
4.2 Question 72: Gross Domestic Product . . . . . . . . . . . . . . . . . . . . 18
4.3 Question 73: Real vs. Nominal GDP . . . . . . . . . . . . . . . . . . . . . . 18
4.4 Question 74: Inflation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
4.5 Question 75: Unemployment Rate . . . . . . . . . . . . . . . . . . . . . . . 19
4.6 Question 76: Types of Unemployment . . . . . . . . . . . . . . . . . . . . 19
4.7 Question 77: Aggregate Demand . . . . . . . . . . . . . . . . . . . . . . . 19
4.8 Question 78: Aggregate Supply . . . . . . . . . . . . . . . . . . . . . . . . 19
4.9 Question 79: Fiscal Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
4.10 Question 80: Monetary Policy . . . . . . . . . . . . . . . . . . . . . . . . . 19
4.11 Question 81: Phillips Curve . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
4.12 Question 82: Money Supply Misconception . . . . . . . . . . . . . . . . . 20
4.13 Question 83: Business Cycle . . . . . . . . . . . . . . . . . . . . . . . . . . 20
4.14 Question 84: Federal Reserve Role . . . . . . . . . . . . . . . . . . . . . . 20
4.15 Question 85: Interest Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
4.16 Question 86: GDP Components . . . . . . . . . . . . . . . . . . . . . . . . 20
4.17 Question 87: Deflation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
4.18 Question 88: Multiplier Effect . . . . . . . . . . . . . . . . . . . . . . . . . 21
4.19 Question 89: Economic Indicators . . . . . . . . . . . . . . . . . . . . . . 21
4.20 Question 90: Budget Deficit . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
4.21 Question 91: National Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
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4.22 Question 92: Aggregate Demand Shift . . . . . . . . . . . . . . . . . . . . 21
4.23 Question 93: Aggregate Supply Shift . . . . . . . . . . . . . . . . . . . . . 22
4.24 Question 94: Stagflation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
4.25 Question 95: Monetary Policy Tools . . . . . . . . . . . . . . . . . . . . . 22
4.26 Question 96: Expansionary Fiscal Policy . . . . . . . . . . . . . . . . . . . 22
4.27 Question 97: Contractionary Fiscal Policy . . . . . . . . . . . . . . . . . . 22
4.28 Question 98: Consumer Price Index . . . . . . . . . . . . . . . . . . . . . 22
4.29 Question 99: Cyclical Unemployment . . . . . . . . . . . . . . . . . . . . 23
4.30 Question 100: Economic Growth Impact . . . . . . . . . . . . . . . . . . . 23
4.31 Question 101: Hyperinflation . . . . . . . . . . . . . . . . . . . . . . . . . 23
4.32 Question 102: Fiscal Policy Multiplier . . . . . . . . . . . . . . . . . . . . 23
4.33 Question 103: Money Supply Growth . . . . . . . . . . . . . . . . . . . . . 23
4.34 Question 104: Natural Rate of Unemployment . . . . . . . . . . . . . . . 23
4.35 Question 105: Crowding Out . . . . . . . . . . . . . . . . . . . . . . . . . . 24
5 Market Structures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
5.1 Question 106: Perfect Competition Characteristics . . . . . . . . . . . . 24
5.2 Question 107: Monopoly Definition . . . . . . . . . . . . . . . . . . . . . . 24
5.3 Question 108: Oligopoly Definition . . . . . . . . . . . . . . . . . . . . . . 24
5.4 Question 109: Monopolistic Competition . . . . . . . . . . . . . . . . . . 24
5.5 Question 110: Barriers to Entry . . . . . . . . . . . . . . . . . . . . . . . . 25
5.6 Question 111: Price Discrimination . . . . . . . . . . . . . . . . . . . . . . 25
5.7 Question 112: Market Power . . . . . . . . . . . . . . . . . . . . . . . . . . 25
5.8 Question 113: Perfect Competition Efficiency . . . . . . . . . . . . . . . . 25
5.9 Question 114: Monopoly Inefficiency . . . . . . . . . . . . . . . . . . . . . 25
5.10 Question 115: Oligopoly Collusion . . . . . . . . . . . . . . . . . . . . . . 26
5.11 Question 116: Product Differentiation . . . . . . . . . . . . . . . . . . . . 26
5.12 Question 117: Natural Monopoly . . . . . . . . . . . . . . . . . . . . . . . 26
5.13 Question 118: Antitrust Laws . . . . . . . . . . . . . . . . . . . . . . . . . 26
5.14 Question 119: Market Structure Pricing . . . . . . . . . . . . . . . . . . . 26
5.15 Question 120: Profit Maximization . . . . . . . . . . . . . . . . . . . . . . 26
5.16 Question 121: Economies of Scale . . . . . . . . . . . . . . . . . . . . . . . 27
5.17 Question 122: Diseconomies of Scale . . . . . . . . . . . . . . . . . . . . . 27
5.18 Question 123: Monopoly Regulation . . . . . . . . . . . . . . . . . . . . . 27
5.19 Question 124: Oligopoly Interdependence . . . . . . . . . . . . . . . . . 27
5.20 Question 125: Perfect Competition Entry . . . . . . . . . . . . . . . . . . 27
5.21 Question 126: Monopoly Profit . . . . . . . . . . . . . . . . . . . . . . . . 27
5.22 Question 127: Monopolistic Competition Example . . . . . . . . . . . . 28
5.23 Question 128: Collusion Instability . . . . . . . . . . . . . . . . . . . . . . 28
5.24 Question 129: Price Leadership . . . . . . . . . . . . . . . . . . . . . . . . 28
5.25 Question 130: Deadweight Loss . . . . . . . . . . . . . . . . . . . . . . . . 28
5.26 Question 131: Market Structure Innovation . . . . . . . . . . . . . . . . 28
5.27 Question 132: Monopolistic Competition Profit . . . . . . . . . . . . . . 28
5.28 Question 133: Market Power Example . . . . . . . . . . . . . . . . . . . . 29
5.29 Question 134: Game Theory in Oligopolies . . . . . . . . . . . . . . . . . 29
5.30 Question 135: Monopoly Price Setting . . . . . . . . . . . . . . . . . . . . 29
6 Economic Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
6.1 Question 136: Fiscal Policy Goal . . . . . . . . . . . . . . . . . . . . . . . . 29
6.2 Question 137: Monetary Policy Goal . . . . . . . . . . . . . . . . . . . . . 29
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