WGU D089 PRINCIPLES OF ECONOMICS
EXAM PAPER 2026 COMPLETE QUESTIONS
AND ANSWERS 100% ACCURATE
⩥ What are factors of production? Answer: The resources the economy
has available to produce goods and services
⩥ How can Labor's contribution to an economy's output of goods and
services be increased? Answer: By increasing either the quantity of labor
of human capital.
⩥ What are two keys to the use of an economy's factors of production?
Answer: Technology and, in the case of a market economic system, the
efforts of entrepreneurs
⩥ For every factor of production (or input) what is there an associated
factor of? Answer: Payment
⩥ What are factor payments? Answer: What the firm pays for the use of
the factors of production
⩥ When human want exceeds the available resources what is the result?
Answer: Scarcity
,⩥ If the inputs of production are underutilized, is a decrease in
production of the other good required when increasing production to the
point that the output combinations sit on the production possibilities
frontier? Answer: No
⩥ How is opportunity cost calculated? Answer: By dividing the amount
of a good you have given up by the amount of the good you have gained.
⩥ How does opportunity cost appear along a linear production
possibilities frontier? Answer: As a constant
⩥ What is happening to opportunity cost along a bowed out production
possibilities frontier? Answer: An increase in the quantity demanded
⩥ What is the inverse relationship between price and quantity known as?
Answer: The law of demand
⩥ What does a fall in the price of a good almost always cause? Answer:
An increase in the quantity demanded
⩥ What are positive and normative economic thought? Answer: Two
specific aspects of economic reasoning
⩥ What does the law of demand assume? Answer: That all variables that
affect demand, other than price, remain constant
,⩥ What is a demand curve? Answer: a graphical representation depicting
the relationship between a good or service's price and the quantities
consumers are willing to buy at those prices.
⩥ What is a demand schedule? Answer: A table view of the price-
quantity pairings that compose the demand curve
⩥ What will result in movement along a demand curve (up or down)?
Answer: A change in price - a change in quantity demanded
⩥ What will result in a shift in a demand curve (left or right)? Answer: A
change in a non-price - a change in demand
⩥ What causes changes in demand (shifts in the demand curve)?
Answer: - Changes in consumer income, tastes, and preferences
- The size of the population
- prices of other goods such as complements and substitutes
- expectations about the future.
⩥ What fundamental similarity do nearly all demand curves share?
Answer: They slope down from left to right
, ⩥ What is the positive relationship between price and quantity known
as? Answer: The law of supply
⩥ What does the law of supply assume? Answer: That all variables
affecting supply, other than price, remain constant
⩥ What does a rise in the price of a good or service increase? Answer:
The quantity supplied of that good or service
⩥ What does a supply curve depict? Answer: The relationship between
the price of a good or service and the quantities companies are willing to
sell at those prices
⩥ What is a supply schedule? Answer: A table view of the price-quantity
pairing that compose the supply curve.
⩥ What will suppliers do to adjust for non-price changes related to the
determinants of supply? Answer: Shift production
⩥ What will suppliers do to adjust for price-related changes on the
supply curve? Answer: Move production levels
⩥ what are changes in supply (shifts in the supply curve) caused by?
Answer: Prices of inputs, technology,expectations, number of sellers,
and government policies and regulations
EXAM PAPER 2026 COMPLETE QUESTIONS
AND ANSWERS 100% ACCURATE
⩥ What are factors of production? Answer: The resources the economy
has available to produce goods and services
⩥ How can Labor's contribution to an economy's output of goods and
services be increased? Answer: By increasing either the quantity of labor
of human capital.
⩥ What are two keys to the use of an economy's factors of production?
Answer: Technology and, in the case of a market economic system, the
efforts of entrepreneurs
⩥ For every factor of production (or input) what is there an associated
factor of? Answer: Payment
⩥ What are factor payments? Answer: What the firm pays for the use of
the factors of production
⩥ When human want exceeds the available resources what is the result?
Answer: Scarcity
,⩥ If the inputs of production are underutilized, is a decrease in
production of the other good required when increasing production to the
point that the output combinations sit on the production possibilities
frontier? Answer: No
⩥ How is opportunity cost calculated? Answer: By dividing the amount
of a good you have given up by the amount of the good you have gained.
⩥ How does opportunity cost appear along a linear production
possibilities frontier? Answer: As a constant
⩥ What is happening to opportunity cost along a bowed out production
possibilities frontier? Answer: An increase in the quantity demanded
⩥ What is the inverse relationship between price and quantity known as?
Answer: The law of demand
⩥ What does a fall in the price of a good almost always cause? Answer:
An increase in the quantity demanded
⩥ What are positive and normative economic thought? Answer: Two
specific aspects of economic reasoning
⩥ What does the law of demand assume? Answer: That all variables that
affect demand, other than price, remain constant
,⩥ What is a demand curve? Answer: a graphical representation depicting
the relationship between a good or service's price and the quantities
consumers are willing to buy at those prices.
⩥ What is a demand schedule? Answer: A table view of the price-
quantity pairings that compose the demand curve
⩥ What will result in movement along a demand curve (up or down)?
Answer: A change in price - a change in quantity demanded
⩥ What will result in a shift in a demand curve (left or right)? Answer: A
change in a non-price - a change in demand
⩥ What causes changes in demand (shifts in the demand curve)?
Answer: - Changes in consumer income, tastes, and preferences
- The size of the population
- prices of other goods such as complements and substitutes
- expectations about the future.
⩥ What fundamental similarity do nearly all demand curves share?
Answer: They slope down from left to right
, ⩥ What is the positive relationship between price and quantity known
as? Answer: The law of supply
⩥ What does the law of supply assume? Answer: That all variables
affecting supply, other than price, remain constant
⩥ What does a rise in the price of a good or service increase? Answer:
The quantity supplied of that good or service
⩥ What does a supply curve depict? Answer: The relationship between
the price of a good or service and the quantities companies are willing to
sell at those prices
⩥ What is a supply schedule? Answer: A table view of the price-quantity
pairing that compose the supply curve.
⩥ What will suppliers do to adjust for non-price changes related to the
determinants of supply? Answer: Shift production
⩥ What will suppliers do to adjust for price-related changes on the
supply curve? Answer: Move production levels
⩥ what are changes in supply (shifts in the supply curve) caused by?
Answer: Prices of inputs, technology,expectations, number of sellers,
and government policies and regulations
