WGU C718 Microeconomics Questions
Module #1-12| Graded A+ 2026
1-1 - Scarcity results from the fact that
A. People's wants exceed the resources available to satisfy them.
B. Not all goals are desirable.
C. We cannot answer the major economic questions.
D. Choices made in self-interest are not always in the social interest.
E. The population keeps growing. - answer-A. People's wants exceed the resources available
to satisfy
them.
2 All economic questions and problems arise from- - answer-
1-2 - All economic questions and problems arise from
A. The fact that society has more than it needs.
B. Turmoil in the stock market.
C. The unequal distribution of income.
D. A society's wants exceeding what its scarce resources can produce.
E. The difference between self-interest and social interest. - answer-E. A society's wants
exceeding what
its scarce resources can produce.
1-3 - An opportunity cost is-
A. The dollar amount that is paid.
B. Anything the decision maker believes costs to be.
C. The benefits of the highest-valued alternative forgone.
D. Whatever is paid out and cannot be reduced or reversed.
E. Another term for all the sunk costs. - answer-C. The benefits of the highest-valued
alternative forgone.
1-4 - Scarcity requires that people must-
A. Compete
B. Make choices
C. Trade
D. Cooperate - answer-B. Make choices
1-5 - Jane decides to attend the microeconomics cohort session instead of picking up a shift
,at work. She
would have earned $50 for the shift. Jane's opportunity cost of attending the cohort is-
A. The $50 she could have earned at her job.
B. The value of the session minus the $50 she could have earned at her job.
C. Nothing, the cohort sessions are free.
D. Equal to the benefit she gets from the cohort session. - answer-A. The $50 she could have
earned at
her job.
1-6 - Which economic question depends on the incomes that people earn and the prices
they pay for
goods and services?
A. What?
B. How?
C. For Whom?
D. Why?
E. Where? - answer-C. For Whom?
1-7 - Microeconomics includes the study of the
A. Recessions and inflation.
B. Growth in the national economy.
C. Choices made by individuals and businesses.
D. Government influence on interest rates.
E. National unemployment rate. - answer-C. Choices made by individuals and businesses.
1-8 - Which of the following is a microeconomic issue?
A. The Chinese economy experiences rapid economic growth.
B. Inflation skyrockets in Argentina.
C. The effects of government policy on economic growth in Greece.
D. The effect on unemployment of government spending in the United States.
E. Sears closes stores that are not making a profit. - answer-E. Sears closes stores that are
not making a
profit.
1-9 - A forty year old man starting going bald after the birth of his daughter. The statement
"Daughters
cause baldness" is an example of
A. Maximizing self interest.
B. The Fallacy of False Cause.
C. Ceteris Paribus.
D. A normative statement.
E. A positive statement. - answer-B. The Fallacy of False Cause.
,1-10 - Which of the following statements is the best example of the term ceteris paribus?
A. An economist holds other factors constant when he examines the relationship between
tax rates and
tax revenues.
B. More money should be spent on cleaning up the environment.
C. The government budget surplus was $200 billion in 2000 because the economy was
growing.
D. An increase in the budget surplus after an increase in tax rates implies that tax rate
increases cause
budget surpluses.
E. When studying the effects of a budget deficit, an economist must take account of all the
factors
involved. - answer-A. An economist holds other factors constant when he examines the
relationship
between tax rates and tax revenues.
1-11 - Economists classify assembly line workers as part of which factor of production?
A. Land.
B. Labor.
C. Capital.
D. Entrepreneurship. - answer-. Labor.
1-12 - Economists classify factories as part of which factor of production?
A. Land.
B. Labor.
C. Capital.
D. Entrepreneurship. - answer-C. Capital.
1-13 - Sarah starts a market that sells produce from local farms. She rented the storefront,
worked with
farmers to get produce and advertised. What factor of production is she providing by taking
risks and
bringing this service to the market called?
A. Land.
B. Labor.
C. Capital.
D. Entrepreneurship. - answer-D. Entrepreneurship.
1-14 - The circular flow model is used to show the
A. Flow of renewable natural resources.
B. Recycling process of production materials.
, C. Expansions and contractions of economic activity.
D. Flow of expenditures and incomes in the economy.
E. Flow of supply and the flow of demand. - answer-D. Flow of expenditures and incomes in
the
economy.
1-15 - My mother was a potato farmer. Her mother and all the women in my family before
them were
potato farmers. I plan to be a potato farmer. This is likely an example of
A. A command economy.
B. A market economy.
C. An agricultural economy.
D. A traditional economy. - answer-D. A traditional economy.
1-16 - During Cleopatra's reign, olive farmers were told by government officials how much
of their olive
crop was to be used for the production of olive oil. This is an example of
A. A command economy.
B. A market economy.
C. An industrial economy.
D. A traditional economy. - answer-A. A command economy.
1-17 - The statement "Increases in the price of coffee lead to a decline in quantity demanded
of coffee"
is an example of
A. A positive statement.
B. A normative statement.
C. Marginal analysis.
D. Fallacy of False Cause. - answer-A. A positive statement.
1-18 - Which of the following is a normative statement?
A. Increases in the price of coffee lead to a decline in the quantity demanded of coffee.
B. Online shopping increased by 40% the last Christmas season.
C. An increase in the supply of computers has caused the price of computers to fall.
D. The price of computers should be higher so that computer manufactures can make a
larger profit.
E. Recessions lead to an increase in the unemployment rate. - answer-D. The price of
computers should
be higher so that computer manufactures can make a larger profit.
1-19 - Which of the following is an example of making decisions at the margin?
A. A student decides whether to study for one more hour or take a nap.
Module #1-12| Graded A+ 2026
1-1 - Scarcity results from the fact that
A. People's wants exceed the resources available to satisfy them.
B. Not all goals are desirable.
C. We cannot answer the major economic questions.
D. Choices made in self-interest are not always in the social interest.
E. The population keeps growing. - answer-A. People's wants exceed the resources available
to satisfy
them.
2 All economic questions and problems arise from- - answer-
1-2 - All economic questions and problems arise from
A. The fact that society has more than it needs.
B. Turmoil in the stock market.
C. The unequal distribution of income.
D. A society's wants exceeding what its scarce resources can produce.
E. The difference between self-interest and social interest. - answer-E. A society's wants
exceeding what
its scarce resources can produce.
1-3 - An opportunity cost is-
A. The dollar amount that is paid.
B. Anything the decision maker believes costs to be.
C. The benefits of the highest-valued alternative forgone.
D. Whatever is paid out and cannot be reduced or reversed.
E. Another term for all the sunk costs. - answer-C. The benefits of the highest-valued
alternative forgone.
1-4 - Scarcity requires that people must-
A. Compete
B. Make choices
C. Trade
D. Cooperate - answer-B. Make choices
1-5 - Jane decides to attend the microeconomics cohort session instead of picking up a shift
,at work. She
would have earned $50 for the shift. Jane's opportunity cost of attending the cohort is-
A. The $50 she could have earned at her job.
B. The value of the session minus the $50 she could have earned at her job.
C. Nothing, the cohort sessions are free.
D. Equal to the benefit she gets from the cohort session. - answer-A. The $50 she could have
earned at
her job.
1-6 - Which economic question depends on the incomes that people earn and the prices
they pay for
goods and services?
A. What?
B. How?
C. For Whom?
D. Why?
E. Where? - answer-C. For Whom?
1-7 - Microeconomics includes the study of the
A. Recessions and inflation.
B. Growth in the national economy.
C. Choices made by individuals and businesses.
D. Government influence on interest rates.
E. National unemployment rate. - answer-C. Choices made by individuals and businesses.
1-8 - Which of the following is a microeconomic issue?
A. The Chinese economy experiences rapid economic growth.
B. Inflation skyrockets in Argentina.
C. The effects of government policy on economic growth in Greece.
D. The effect on unemployment of government spending in the United States.
E. Sears closes stores that are not making a profit. - answer-E. Sears closes stores that are
not making a
profit.
1-9 - A forty year old man starting going bald after the birth of his daughter. The statement
"Daughters
cause baldness" is an example of
A. Maximizing self interest.
B. The Fallacy of False Cause.
C. Ceteris Paribus.
D. A normative statement.
E. A positive statement. - answer-B. The Fallacy of False Cause.
,1-10 - Which of the following statements is the best example of the term ceteris paribus?
A. An economist holds other factors constant when he examines the relationship between
tax rates and
tax revenues.
B. More money should be spent on cleaning up the environment.
C. The government budget surplus was $200 billion in 2000 because the economy was
growing.
D. An increase in the budget surplus after an increase in tax rates implies that tax rate
increases cause
budget surpluses.
E. When studying the effects of a budget deficit, an economist must take account of all the
factors
involved. - answer-A. An economist holds other factors constant when he examines the
relationship
between tax rates and tax revenues.
1-11 - Economists classify assembly line workers as part of which factor of production?
A. Land.
B. Labor.
C. Capital.
D. Entrepreneurship. - answer-. Labor.
1-12 - Economists classify factories as part of which factor of production?
A. Land.
B. Labor.
C. Capital.
D. Entrepreneurship. - answer-C. Capital.
1-13 - Sarah starts a market that sells produce from local farms. She rented the storefront,
worked with
farmers to get produce and advertised. What factor of production is she providing by taking
risks and
bringing this service to the market called?
A. Land.
B. Labor.
C. Capital.
D. Entrepreneurship. - answer-D. Entrepreneurship.
1-14 - The circular flow model is used to show the
A. Flow of renewable natural resources.
B. Recycling process of production materials.
, C. Expansions and contractions of economic activity.
D. Flow of expenditures and incomes in the economy.
E. Flow of supply and the flow of demand. - answer-D. Flow of expenditures and incomes in
the
economy.
1-15 - My mother was a potato farmer. Her mother and all the women in my family before
them were
potato farmers. I plan to be a potato farmer. This is likely an example of
A. A command economy.
B. A market economy.
C. An agricultural economy.
D. A traditional economy. - answer-D. A traditional economy.
1-16 - During Cleopatra's reign, olive farmers were told by government officials how much
of their olive
crop was to be used for the production of olive oil. This is an example of
A. A command economy.
B. A market economy.
C. An industrial economy.
D. A traditional economy. - answer-A. A command economy.
1-17 - The statement "Increases in the price of coffee lead to a decline in quantity demanded
of coffee"
is an example of
A. A positive statement.
B. A normative statement.
C. Marginal analysis.
D. Fallacy of False Cause. - answer-A. A positive statement.
1-18 - Which of the following is a normative statement?
A. Increases in the price of coffee lead to a decline in the quantity demanded of coffee.
B. Online shopping increased by 40% the last Christmas season.
C. An increase in the supply of computers has caused the price of computers to fall.
D. The price of computers should be higher so that computer manufactures can make a
larger profit.
E. Recessions lead to an increase in the unemployment rate. - answer-D. The price of
computers should
be higher so that computer manufactures can make a larger profit.
1-19 - Which of the following is an example of making decisions at the margin?
A. A student decides whether to study for one more hour or take a nap.
