WGU D089 PRINCIPLES OF ECONOMICS CI
MODULE QUIZZES 49 QUESTIONS WITH
VERIFIED ANSWERS
Dan decides to spend $1,000 to repair his old car because he estimates that by
spending this extra money he can get an extra year of use from the car.
Feedback:
When people "think at the margin", they compare the extra benefit associated
with some action to the extra cost associated with that action. - CORRECT
ANSWER Principle 3 states that "Rational people think at the margin." Which of
the following is an example of marginal thinking?
Macroeconomics
Feedback:
Macroeconomics looks at the economy as a whole. It focuses on broad issues such
as the growth of production, number of unemployed people, inflationary increase
in prices, government deficits, and levels of exports and imports. - CORRECT
ANSWER The Bureau of Labor Statistics tracks the U.S. unemployment rate and
provides statistics for unemployment by age and race. This information is the
focus of which branch of economics?
Unattainable
Feedback:
, Points that lie outside of the production possibilities frontier are unattainable. -
CORRECT ANSWER A combination outside of the graph points (to the right) is...
The economy begins by producing a combination that is inside the PPF and then
moves to a point on the existing PPF. - CORRECT ANSWER Suppose an economy
suffers from a recession with high unemployment, but then recovers eventually
reaching full employment. How would this be illustrated using a PPF?
Amount you give up / amount you gain - CORRECT ANSWER How do you calculate
opportunity cost?
Quantity demanded of the good decreases.
Feedback:
The "Law of Demand" describes an inverse relationship between price and
quantity demanded. When price increases, quantity demanded falls - CORRECT
ANSWER According to the "Law of Demand", what happens when the price of a
good increases?
The quantity supplied of pizza decreases.
Feedback:
According to the "Law of Supply", there is a positive relationship between price
and quantity supplied. - CORRECT ANSWER What happens when the price of pizza
decreases?
MODULE QUIZZES 49 QUESTIONS WITH
VERIFIED ANSWERS
Dan decides to spend $1,000 to repair his old car because he estimates that by
spending this extra money he can get an extra year of use from the car.
Feedback:
When people "think at the margin", they compare the extra benefit associated
with some action to the extra cost associated with that action. - CORRECT
ANSWER Principle 3 states that "Rational people think at the margin." Which of
the following is an example of marginal thinking?
Macroeconomics
Feedback:
Macroeconomics looks at the economy as a whole. It focuses on broad issues such
as the growth of production, number of unemployed people, inflationary increase
in prices, government deficits, and levels of exports and imports. - CORRECT
ANSWER The Bureau of Labor Statistics tracks the U.S. unemployment rate and
provides statistics for unemployment by age and race. This information is the
focus of which branch of economics?
Unattainable
Feedback:
, Points that lie outside of the production possibilities frontier are unattainable. -
CORRECT ANSWER A combination outside of the graph points (to the right) is...
The economy begins by producing a combination that is inside the PPF and then
moves to a point on the existing PPF. - CORRECT ANSWER Suppose an economy
suffers from a recession with high unemployment, but then recovers eventually
reaching full employment. How would this be illustrated using a PPF?
Amount you give up / amount you gain - CORRECT ANSWER How do you calculate
opportunity cost?
Quantity demanded of the good decreases.
Feedback:
The "Law of Demand" describes an inverse relationship between price and
quantity demanded. When price increases, quantity demanded falls - CORRECT
ANSWER According to the "Law of Demand", what happens when the price of a
good increases?
The quantity supplied of pizza decreases.
Feedback:
According to the "Law of Supply", there is a positive relationship between price
and quantity supplied. - CORRECT ANSWER What happens when the price of pizza
decreases?
