D089 PRINCIPLES OF ECONOMICS OA
2025
VERIFIED EXAM QUESTIONS &
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: Essence of Economics . . . . . . . . . . . . . . . . . . . . . . 5
2.2 Question 2: Economic Choices . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.3 Question 3: Cost of Choices . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.4 Question 4: Inputs for Production . . . . . . . . . . . . . . . . . . . . . . . 6
2.5 Question 5: Marginal Thinking . . . . . . . . . . . . . . . . . . . . . . . . 6
2.6 Question 6: Production Possibilities . . . . . . . . . . . . . . . . . . . . . 6
2.7 Question 7: Economic System Types . . . . . . . . . . . . . . . . . . . . . 6
2.8 Question 8: Trade-Off Scenario . . . . . . . . . . . . . . . . . . . . . . . . 6
2.9 Question 9: Behavioral Incentives . . . . . . . . . . . . . . . . . . . . . . 7
2.10 Question 10: Role of Economic Models . . . . . . . . . . . . . . . . . . . . 7
2.11 Question 11: Objective Economics . . . . . . . . . . . . . . . . . . . . . . 7
2.12 Question 12: Subjective Economics . . . . . . . . . . . . . . . . . . . . . . 7
2.13 Question 13: Resource Allocation Efficiency . . . . . . . . . . . . . . . . 7
2.14 Question 14: Specialization Advantage . . . . . . . . . . . . . . . . . . . 7
2.15 Question 15: Output Advantage . . . . . . . . . . . . . . . . . . . . . . . . 8
2.16 Question 16: Scarcity’s Influence . . . . . . . . . . . . . . . . . . . . . . . 8
2.17 Question 17: Circular Flow Dynamics . . . . . . . . . . . . . . . . . . . . 8
2.18 Question 18: Distribution Question . . . . . . . . . . . . . . . . . . . . . . 8
2.19 Question 19: Government Prioritization . . . . . . . . . . . . . . . . . . . 8
2.20 Question 20: Global Trade Motivation . . . . . . . . . . . . . . . . . . . . 8
2.21 Question 21: Incremental Cost . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.22 Question 22: Market Resource Allocation . . . . . . . . . . . . . . . . . . 9
2.23 Question 23: Economic Expansion . . . . . . . . . . . . . . . . . . . . . . 9
2.24 Question 24: Opportunity Cost Case . . . . . . . . . . . . . . . . . . . . . 9
2.25 Question 25: Cost Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.26 Question 26: Scarcity Misunderstanding . . . . . . . . . . . . . . . . . . 9
2.27 Question 27: Production Subsidies . . . . . . . . . . . . . . . . . . . . . . 10
2.28 Question 28: Marginal Decision Value . . . . . . . . . . . . . . . . . . . . 10
2.29 Question 29: Production Technique Choice . . . . . . . . . . . . . . . . . 10
2.30 Question 30: Variable Isolation . . . . . . . . . . . . . . . . . . . . . . . . 10
2.31 Question 31: Trade Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . 10
2.32 Question 32: Specialization Benefits . . . . . . . . . . . . . . . . . . . . . 10
2.33 Question 33: Fair Distribution . . . . . . . . . . . . . . . . . . . . . . . . . 11
2.34 Question 34: PPF Underutilization . . . . . . . . . . . . . . . . . . . . . . 11
2.35 Question 35: Incremental Benefit . . . . . . . . . . . . . . . . . . . . . . . 11
3 Microeconomics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.1 Question 36: Microeconomics Definition . . . . . . . . . . . . . . . . . . 11
3.2 Question 37: Demand Curve Slope . . . . . . . . . . . . . . . . . . . . . . 11
3.3 Question 38: Supply Curve Slope . . . . . . . . . . . . . . . . . . . . . . . 12
3.4 Question 39: Market Balance . . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.5 Question 40: Price Sensitivity . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.6 Question 41: Elasticity Computation . . . . . . . . . . . . . . . . . . . . . 12
3.7 Question 42: Substitute Goods Effect . . . . . . . . . . . . . . . . . . . . . 12
3.8 Question 43: Complementary Goods Effect . . . . . . . . . . . . . . . . . 12
1
,D089 Principles of Economics OA 2025 July 3, 2025
3.9 Question 44: Supply Increase . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.10 Question 45: Demand Increase . . . . . . . . . . . . . . . . . . . . . . . . 13
3.11 Question 46: Excess Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.12 Question 47: Excess Demand . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.13 Question 48: Price Cap Effect . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.14 Question 49: Price Minimum Effect . . . . . . . . . . . . . . . . . . . . . . 13
3.15 Question 50: Consumer Benefit . . . . . . . . . . . . . . . . . . . . . . . . 14
3.16 Question 51: Producer Benefit . . . . . . . . . . . . . . . . . . . . . . . . . 14
3.17 Question 52: Income and Demand . . . . . . . . . . . . . . . . . . . . . . 14
3.18 Question 53: Inferior Goods Demand . . . . . . . . . . . . . . . . . . . . 14
3.19 Question 54: Cross-Price Sensitivity . . . . . . . . . . . . . . . . . . . . . 14
3.20 Question 55: Income Sensitivity . . . . . . . . . . . . . . . . . . . . . . . . 14
3.21 Question 56: Market Inefficiency . . . . . . . . . . . . . . . . . . . . . . . 15
3.22 Question 57: External Benefit . . . . . . . . . . . . . . . . . . . . . . . . . 15
3.23 Question 58: Non-Excludable Goods . . . . . . . . . . . . . . . . . . . . . 15
3.24 Question 59: Utility Optimization . . . . . . . . . . . . . . . . . . . . . . . 15
3.25 Question 60: Fixed Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 15
3.26 Question 61: Variable Expenses . . . . . . . . . . . . . . . . . . . . . . . . 15
3.27 Question 62: Cost Reduction Impact . . . . . . . . . . . . . . . . . . . . . 16
3.28 Question 63: Consumer Purchase Decisions . . . . . . . . . . . . . . . . 16
3.29 Question 64: Total Demand . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
3.30 Question 65: Demand Shifters . . . . . . . . . . . . . . . . . . . . . . . . . 16
3.31 Question 66: Elasticity Types . . . . . . . . . . . . . . . . . . . . . . . . . . 16
3.32 Question 67: Elasticity and Sales . . . . . . . . . . . . . . . . . . . . . . . 16
3.33 Question 68: External Benefit Promotion . . . . . . . . . . . . . . . . . . 17
3.34 Question 69: Decreasing Returns . . . . . . . . . . . . . . . . . . . . . . . 17
3.35 Question 70: Non-Rival Goods . . . . . . . . . . . . . . . . . . . . . . . . . 17
4 Macroeconomics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
4.1 Question 71: Macroeconomics Scope . . . . . . . . . . . . . . . . . . . . . 17
4.2 Question 72: Economic Output . . . . . . . . . . . . . . . . . . . . . . . . 17
4.3 Question 73: Inflation-Adjusted GDP . . . . . . . . . . . . . . . . . . . . . 18
4.4 Question 74: Price Level Increase . . . . . . . . . . . . . . . . . . . . . . . 18
4.5 Question 75: Jobless Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
4.6 Question 76: Unemployment Categories . . . . . . . . . . . . . . . . . . . 18
4.7 Question 77: Total Demand Components . . . . . . . . . . . . . . . . . . 18
4.8 Question 78: Total Supply Factors . . . . . . . . . . . . . . . . . . . . . . . 18
4.9 Question 79: Government Budget Policy . . . . . . . . . . . . . . . . . . . 19
4.10 Question 80: Central Bank Policy . . . . . . . . . . . . . . . . . . . . . . . 19
4.11 Question 81: Inflation-Unemployment Trade-Off . . . . . . . . . . . . . 19
4.12 Question 82: Money Supply Excess . . . . . . . . . . . . . . . . . . . . . . 19
4.13 Question 83: Economic Fluctuations . . . . . . . . . . . . . . . . . . . . . 19
4.14 Question 84: Central Bank Role . . . . . . . . . . . . . . . . . . . . . . . . 19
4.15 Question 85: Borrowing Costs . . . . . . . . . . . . . . . . . . . . . . . . . 20
4.16 Question 86: Economic Output Formula . . . . . . . . . . . . . . . . . . . 20
4.17 Question 87: Price Level Decrease . . . . . . . . . . . . . . . . . . . . . . 20
4.18 Question 88: Spending Amplification . . . . . . . . . . . . . . . . . . . . . 20
4.19 Question 89: Economic Predictors . . . . . . . . . . . . . . . . . . . . . . 20
4.20 Question 90: Government Borrowing . . . . . . . . . . . . . . . . . . . . 20
4.21 Question 91: Accumulated Debt . . . . . . . . . . . . . . . . . . . . . . . . 21
Page 2 of 31
, D089 Principles of Economics OA 2025 July 3, 2025
4.22 Question 92: Demand Stimulation . . . . . . . . . . . . . . . . . . . . . . 21
4.23 Question 93: Supply Expansion . . . . . . . . . . . . . . . . . . . . . . . . 21
4.24 Question 94: Economic Stagnation . . . . . . . . . . . . . . . . . . . . . . 21
4.25 Question 95: Monetary Tools . . . . . . . . . . . . . . . . . . . . . . . . . . 21
4.26 Question 96: Stimulative Fiscal Policy . . . . . . . . . . . . . . . . . . . . 21
4.27 Question 97: Restrictive Fiscal Policy . . . . . . . . . . . . . . . . . . . . . 22
4.28 Question 98: Inflation Measurement . . . . . . . . . . . . . . . . . . . . . 22
4.29 Question 99: Recession Unemployment . . . . . . . . . . . . . . . . . . . 22
4.30 Question 100: Growth and Employment . . . . . . . . . . . . . . . . . . . 22
4.31 Question 101: Extreme Inflation . . . . . . . . . . . . . . . . . . . . . . . 22
4.32 Question 102: Fiscal Impact Amplifier . . . . . . . . . . . . . . . . . . . . 22
4.33 Question 103: Money Supply and Prices . . . . . . . . . . . . . . . . . . . 23
4.34 Question 104: Baseline Unemployment . . . . . . . . . . . . . . . . . . . 23
4.35 Question 105: Private Investment Reduction . . . . . . . . . . . . . . . . 23
5 Market Structures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
5.1 Question 106: Competitive Market Features . . . . . . . . . . . . . . . . 23
5.2 Question 107: Single-Firm Market . . . . . . . . . . . . . . . . . . . . . . 23
5.3 Question 108: Few-Firm Market . . . . . . . . . . . . . . . . . . . . . . . . 24
5.4 Question 109: Differentiated Product Market . . . . . . . . . . . . . . . . 24
5.5 Question 110: Market Entry Obstacles . . . . . . . . . . . . . . . . . . . . 24
5.6 Question 111: Variable Pricing . . . . . . . . . . . . . . . . . . . . . . . . . 24
5.7 Question 112: Price Control Ability . . . . . . . . . . . . . . . . . . . . . . 24
5.8 Question 113: Competitive Market Efficiency . . . . . . . . . . . . . . . . 24
5.9 Question 114: Monopoly Inefficiency . . . . . . . . . . . . . . . . . . . . . 25
5.10 Question 115: Firm Coordination . . . . . . . . . . . . . . . . . . . . . . . 25
5.11 Question 116: Product Uniqueness . . . . . . . . . . . . . . . . . . . . . . 25
5.12 Question 117: Scale-Based Monopoly . . . . . . . . . . . . . . . . . . . . . 25
5.13 Question 118: Competition Laws . . . . . . . . . . . . . . . . . . . . . . . 25
5.14 Question 119: Market Structure Pricing . . . . . . . . . . . . . . . . . . . 25
5.15 Question 120: Profit Optimization . . . . . . . . . . . . . . . . . . . . . . 26
5.16 Question 121: Scale Cost Benefits . . . . . . . . . . . . . . . . . . . . . . . 26
5.17 Question 122: Scale Inefficiencies . . . . . . . . . . . . . . . . . . . . . . . 26
5.18 Question 123: Monopoly Control . . . . . . . . . . . . . . . . . . . . . . . 26
5.19 Question 124: Firm Interdependence . . . . . . . . . . . . . . . . . . . . 26
5.20 Question 125: Easy Market Entry . . . . . . . . . . . . . . . . . . . . . . . 26
5.21 Question 126: Monopoly Profit Source . . . . . . . . . . . . . . . . . . . . 27
5.22 Question 127: Differentiated Competition Example . . . . . . . . . . . . 27
5.23 Question 128: Collusion Challenges . . . . . . . . . . . . . . . . . . . . . . 27
5.24 Question 129: Price Setting Leadership . . . . . . . . . . . . . . . . . . . 27
5.25 Question 130: Welfare Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
5.26 Question 131: Innovation Driver . . . . . . . . . . . . . . . . . . . . . . . 27
5.27 Question 132: Long-Run Profits . . . . . . . . . . . . . . . . . . . . . . . . 28
5.28 Question 133: Market Power Example . . . . . . . . . . . . . . . . . . . . 28
5.29 Question 134: Strategic Analysis . . . . . . . . . . . . . . . . . . . . . . . . 28
5.30 Question 135: Monopoly Price Setting . . . . . . . . . . . . . . . . . . . . 28
6 Economic Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
6.1 Question 136: Fiscal Policy Goal . . . . . . . . . . . . . . . . . . . . . . . . 28
6.2 Question 137: Monetary Policy Goal . . . . . . . . . . . . . . . . . . . . . 29
Page 3 of 31
2025
VERIFIED EXAM QUESTIONS &
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: Essence of Economics . . . . . . . . . . . . . . . . . . . . . . 5
2.2 Question 2: Economic Choices . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.3 Question 3: Cost of Choices . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.4 Question 4: Inputs for Production . . . . . . . . . . . . . . . . . . . . . . . 6
2.5 Question 5: Marginal Thinking . . . . . . . . . . . . . . . . . . . . . . . . 6
2.6 Question 6: Production Possibilities . . . . . . . . . . . . . . . . . . . . . 6
2.7 Question 7: Economic System Types . . . . . . . . . . . . . . . . . . . . . 6
2.8 Question 8: Trade-Off Scenario . . . . . . . . . . . . . . . . . . . . . . . . 6
2.9 Question 9: Behavioral Incentives . . . . . . . . . . . . . . . . . . . . . . 7
2.10 Question 10: Role of Economic Models . . . . . . . . . . . . . . . . . . . . 7
2.11 Question 11: Objective Economics . . . . . . . . . . . . . . . . . . . . . . 7
2.12 Question 12: Subjective Economics . . . . . . . . . . . . . . . . . . . . . . 7
2.13 Question 13: Resource Allocation Efficiency . . . . . . . . . . . . . . . . 7
2.14 Question 14: Specialization Advantage . . . . . . . . . . . . . . . . . . . 7
2.15 Question 15: Output Advantage . . . . . . . . . . . . . . . . . . . . . . . . 8
2.16 Question 16: Scarcity’s Influence . . . . . . . . . . . . . . . . . . . . . . . 8
2.17 Question 17: Circular Flow Dynamics . . . . . . . . . . . . . . . . . . . . 8
2.18 Question 18: Distribution Question . . . . . . . . . . . . . . . . . . . . . . 8
2.19 Question 19: Government Prioritization . . . . . . . . . . . . . . . . . . . 8
2.20 Question 20: Global Trade Motivation . . . . . . . . . . . . . . . . . . . . 8
2.21 Question 21: Incremental Cost . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.22 Question 22: Market Resource Allocation . . . . . . . . . . . . . . . . . . 9
2.23 Question 23: Economic Expansion . . . . . . . . . . . . . . . . . . . . . . 9
2.24 Question 24: Opportunity Cost Case . . . . . . . . . . . . . . . . . . . . . 9
2.25 Question 25: Cost Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.26 Question 26: Scarcity Misunderstanding . . . . . . . . . . . . . . . . . . 9
2.27 Question 27: Production Subsidies . . . . . . . . . . . . . . . . . . . . . . 10
2.28 Question 28: Marginal Decision Value . . . . . . . . . . . . . . . . . . . . 10
2.29 Question 29: Production Technique Choice . . . . . . . . . . . . . . . . . 10
2.30 Question 30: Variable Isolation . . . . . . . . . . . . . . . . . . . . . . . . 10
2.31 Question 31: Trade Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . 10
2.32 Question 32: Specialization Benefits . . . . . . . . . . . . . . . . . . . . . 10
2.33 Question 33: Fair Distribution . . . . . . . . . . . . . . . . . . . . . . . . . 11
2.34 Question 34: PPF Underutilization . . . . . . . . . . . . . . . . . . . . . . 11
2.35 Question 35: Incremental Benefit . . . . . . . . . . . . . . . . . . . . . . . 11
3 Microeconomics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.1 Question 36: Microeconomics Definition . . . . . . . . . . . . . . . . . . 11
3.2 Question 37: Demand Curve Slope . . . . . . . . . . . . . . . . . . . . . . 11
3.3 Question 38: Supply Curve Slope . . . . . . . . . . . . . . . . . . . . . . . 12
3.4 Question 39: Market Balance . . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.5 Question 40: Price Sensitivity . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.6 Question 41: Elasticity Computation . . . . . . . . . . . . . . . . . . . . . 12
3.7 Question 42: Substitute Goods Effect . . . . . . . . . . . . . . . . . . . . . 12
3.8 Question 43: Complementary Goods Effect . . . . . . . . . . . . . . . . . 12
1
,D089 Principles of Economics OA 2025 July 3, 2025
3.9 Question 44: Supply Increase . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.10 Question 45: Demand Increase . . . . . . . . . . . . . . . . . . . . . . . . 13
3.11 Question 46: Excess Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.12 Question 47: Excess Demand . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.13 Question 48: Price Cap Effect . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.14 Question 49: Price Minimum Effect . . . . . . . . . . . . . . . . . . . . . . 13
3.15 Question 50: Consumer Benefit . . . . . . . . . . . . . . . . . . . . . . . . 14
3.16 Question 51: Producer Benefit . . . . . . . . . . . . . . . . . . . . . . . . . 14
3.17 Question 52: Income and Demand . . . . . . . . . . . . . . . . . . . . . . 14
3.18 Question 53: Inferior Goods Demand . . . . . . . . . . . . . . . . . . . . 14
3.19 Question 54: Cross-Price Sensitivity . . . . . . . . . . . . . . . . . . . . . 14
3.20 Question 55: Income Sensitivity . . . . . . . . . . . . . . . . . . . . . . . . 14
3.21 Question 56: Market Inefficiency . . . . . . . . . . . . . . . . . . . . . . . 15
3.22 Question 57: External Benefit . . . . . . . . . . . . . . . . . . . . . . . . . 15
3.23 Question 58: Non-Excludable Goods . . . . . . . . . . . . . . . . . . . . . 15
3.24 Question 59: Utility Optimization . . . . . . . . . . . . . . . . . . . . . . . 15
3.25 Question 60: Fixed Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 15
3.26 Question 61: Variable Expenses . . . . . . . . . . . . . . . . . . . . . . . . 15
3.27 Question 62: Cost Reduction Impact . . . . . . . . . . . . . . . . . . . . . 16
3.28 Question 63: Consumer Purchase Decisions . . . . . . . . . . . . . . . . 16
3.29 Question 64: Total Demand . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
3.30 Question 65: Demand Shifters . . . . . . . . . . . . . . . . . . . . . . . . . 16
3.31 Question 66: Elasticity Types . . . . . . . . . . . . . . . . . . . . . . . . . . 16
3.32 Question 67: Elasticity and Sales . . . . . . . . . . . . . . . . . . . . . . . 16
3.33 Question 68: External Benefit Promotion . . . . . . . . . . . . . . . . . . 17
3.34 Question 69: Decreasing Returns . . . . . . . . . . . . . . . . . . . . . . . 17
3.35 Question 70: Non-Rival Goods . . . . . . . . . . . . . . . . . . . . . . . . . 17
4 Macroeconomics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
4.1 Question 71: Macroeconomics Scope . . . . . . . . . . . . . . . . . . . . . 17
4.2 Question 72: Economic Output . . . . . . . . . . . . . . . . . . . . . . . . 17
4.3 Question 73: Inflation-Adjusted GDP . . . . . . . . . . . . . . . . . . . . . 18
4.4 Question 74: Price Level Increase . . . . . . . . . . . . . . . . . . . . . . . 18
4.5 Question 75: Jobless Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
4.6 Question 76: Unemployment Categories . . . . . . . . . . . . . . . . . . . 18
4.7 Question 77: Total Demand Components . . . . . . . . . . . . . . . . . . 18
4.8 Question 78: Total Supply Factors . . . . . . . . . . . . . . . . . . . . . . . 18
4.9 Question 79: Government Budget Policy . . . . . . . . . . . . . . . . . . . 19
4.10 Question 80: Central Bank Policy . . . . . . . . . . . . . . . . . . . . . . . 19
4.11 Question 81: Inflation-Unemployment Trade-Off . . . . . . . . . . . . . 19
4.12 Question 82: Money Supply Excess . . . . . . . . . . . . . . . . . . . . . . 19
4.13 Question 83: Economic Fluctuations . . . . . . . . . . . . . . . . . . . . . 19
4.14 Question 84: Central Bank Role . . . . . . . . . . . . . . . . . . . . . . . . 19
4.15 Question 85: Borrowing Costs . . . . . . . . . . . . . . . . . . . . . . . . . 20
4.16 Question 86: Economic Output Formula . . . . . . . . . . . . . . . . . . . 20
4.17 Question 87: Price Level Decrease . . . . . . . . . . . . . . . . . . . . . . 20
4.18 Question 88: Spending Amplification . . . . . . . . . . . . . . . . . . . . . 20
4.19 Question 89: Economic Predictors . . . . . . . . . . . . . . . . . . . . . . 20
4.20 Question 90: Government Borrowing . . . . . . . . . . . . . . . . . . . . 20
4.21 Question 91: Accumulated Debt . . . . . . . . . . . . . . . . . . . . . . . . 21
Page 2 of 31
, D089 Principles of Economics OA 2025 July 3, 2025
4.22 Question 92: Demand Stimulation . . . . . . . . . . . . . . . . . . . . . . 21
4.23 Question 93: Supply Expansion . . . . . . . . . . . . . . . . . . . . . . . . 21
4.24 Question 94: Economic Stagnation . . . . . . . . . . . . . . . . . . . . . . 21
4.25 Question 95: Monetary Tools . . . . . . . . . . . . . . . . . . . . . . . . . . 21
4.26 Question 96: Stimulative Fiscal Policy . . . . . . . . . . . . . . . . . . . . 21
4.27 Question 97: Restrictive Fiscal Policy . . . . . . . . . . . . . . . . . . . . . 22
4.28 Question 98: Inflation Measurement . . . . . . . . . . . . . . . . . . . . . 22
4.29 Question 99: Recession Unemployment . . . . . . . . . . . . . . . . . . . 22
4.30 Question 100: Growth and Employment . . . . . . . . . . . . . . . . . . . 22
4.31 Question 101: Extreme Inflation . . . . . . . . . . . . . . . . . . . . . . . 22
4.32 Question 102: Fiscal Impact Amplifier . . . . . . . . . . . . . . . . . . . . 22
4.33 Question 103: Money Supply and Prices . . . . . . . . . . . . . . . . . . . 23
4.34 Question 104: Baseline Unemployment . . . . . . . . . . . . . . . . . . . 23
4.35 Question 105: Private Investment Reduction . . . . . . . . . . . . . . . . 23
5 Market Structures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
5.1 Question 106: Competitive Market Features . . . . . . . . . . . . . . . . 23
5.2 Question 107: Single-Firm Market . . . . . . . . . . . . . . . . . . . . . . 23
5.3 Question 108: Few-Firm Market . . . . . . . . . . . . . . . . . . . . . . . . 24
5.4 Question 109: Differentiated Product Market . . . . . . . . . . . . . . . . 24
5.5 Question 110: Market Entry Obstacles . . . . . . . . . . . . . . . . . . . . 24
5.6 Question 111: Variable Pricing . . . . . . . . . . . . . . . . . . . . . . . . . 24
5.7 Question 112: Price Control Ability . . . . . . . . . . . . . . . . . . . . . . 24
5.8 Question 113: Competitive Market Efficiency . . . . . . . . . . . . . . . . 24
5.9 Question 114: Monopoly Inefficiency . . . . . . . . . . . . . . . . . . . . . 25
5.10 Question 115: Firm Coordination . . . . . . . . . . . . . . . . . . . . . . . 25
5.11 Question 116: Product Uniqueness . . . . . . . . . . . . . . . . . . . . . . 25
5.12 Question 117: Scale-Based Monopoly . . . . . . . . . . . . . . . . . . . . . 25
5.13 Question 118: Competition Laws . . . . . . . . . . . . . . . . . . . . . . . 25
5.14 Question 119: Market Structure Pricing . . . . . . . . . . . . . . . . . . . 25
5.15 Question 120: Profit Optimization . . . . . . . . . . . . . . . . . . . . . . 26
5.16 Question 121: Scale Cost Benefits . . . . . . . . . . . . . . . . . . . . . . . 26
5.17 Question 122: Scale Inefficiencies . . . . . . . . . . . . . . . . . . . . . . . 26
5.18 Question 123: Monopoly Control . . . . . . . . . . . . . . . . . . . . . . . 26
5.19 Question 124: Firm Interdependence . . . . . . . . . . . . . . . . . . . . 26
5.20 Question 125: Easy Market Entry . . . . . . . . . . . . . . . . . . . . . . . 26
5.21 Question 126: Monopoly Profit Source . . . . . . . . . . . . . . . . . . . . 27
5.22 Question 127: Differentiated Competition Example . . . . . . . . . . . . 27
5.23 Question 128: Collusion Challenges . . . . . . . . . . . . . . . . . . . . . . 27
5.24 Question 129: Price Setting Leadership . . . . . . . . . . . . . . . . . . . 27
5.25 Question 130: Welfare Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
5.26 Question 131: Innovation Driver . . . . . . . . . . . . . . . . . . . . . . . 27
5.27 Question 132: Long-Run Profits . . . . . . . . . . . . . . . . . . . . . . . . 28
5.28 Question 133: Market Power Example . . . . . . . . . . . . . . . . . . . . 28
5.29 Question 134: Strategic Analysis . . . . . . . . . . . . . . . . . . . . . . . . 28
5.30 Question 135: Monopoly Price Setting . . . . . . . . . . . . . . . . . . . . 28
6 Economic Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
6.1 Question 136: Fiscal Policy Goal . . . . . . . . . . . . . . . . . . . . . . . . 28
6.2 Question 137: Monetary Policy Goal . . . . . . . . . . . . . . . . . . . . . 29
Page 3 of 31
