WGU - D089 - PRINCIPLES OF ECONOMICS EXAM 2024/2025 WITH
100% CORRECT ANSWERS
How are Positive and Normative economics different from each other? - correct answer Positive
economics clearly states and economic issue, and normative economics provides the value-based
solution for the issue.
What are factors of production? - correct 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? - correct
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? - correct 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? - correct answer
Payment
What are factor payments? - correct answer What the firm pays for the use of the factors of
production
When human want exceeds the available resources what is the result? - correct 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? - correct answer No
How is opportunity cost calculated? - correct 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? - correct answer As
a constant
What is happening to opportunity cost along a bowed out production possibilities frontier? - correct
answer An increase in the quantity demanded
What is the inverse relationship between price and quantity known as? - correct answer The law of
demand
What does a fall in the price of a good almost always cause? - correct answer An increase in the
quantity demanded
What are positive and normative economic thought? - correct answer Two specific aspects of
economic reasoning
What does the law of demand assume? - correct answer That all variables that affect demand, other
than price, remain constant
What is a demand curve? - correct 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? - correct 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)? - correct answer A change in price -
a change in quantity demanded
What will result in a shift in a demand curve (left or right)? - correct answer A change in a non-price - a
change in demand
What causes changes in demand (shifts in the demand curve)? - correct 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? - correct answer They slope down
from left to right
What is the positive relationship between price and quantity known as? - correct answer The law of
supply
What does the law of supply assume? - correct answer That all variables affecting supply, other than
price, remain constant
What does a rise in the price of a good or service increase? - correct answer The quantity supplied of
that good or service
What does a supply curve depict? - correct 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? - correct 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? - correct
answer Shift production
What will suppliers do to adjust for price-related changes on the supply curve? - correct answer Move
production levels
what are changes in supply (shifts in the supply curve) caused by? - correct answer Prices of inputs,
technology,expectations, number of sellers, and government policies and regulations
What fundamental similarity do nearly all supply curves share? - correct answer They slope up from
left to right
100% CORRECT ANSWERS
How are Positive and Normative economics different from each other? - correct answer Positive
economics clearly states and economic issue, and normative economics provides the value-based
solution for the issue.
What are factors of production? - correct 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? - correct
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? - correct 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? - correct answer
Payment
What are factor payments? - correct answer What the firm pays for the use of the factors of
production
When human want exceeds the available resources what is the result? - correct 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? - correct answer No
How is opportunity cost calculated? - correct 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? - correct answer As
a constant
What is happening to opportunity cost along a bowed out production possibilities frontier? - correct
answer An increase in the quantity demanded
What is the inverse relationship between price and quantity known as? - correct answer The law of
demand
What does a fall in the price of a good almost always cause? - correct answer An increase in the
quantity demanded
What are positive and normative economic thought? - correct answer Two specific aspects of
economic reasoning
What does the law of demand assume? - correct answer That all variables that affect demand, other
than price, remain constant
What is a demand curve? - correct 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? - correct 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)? - correct answer A change in price -
a change in quantity demanded
What will result in a shift in a demand curve (left or right)? - correct answer A change in a non-price - a
change in demand
What causes changes in demand (shifts in the demand curve)? - correct 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? - correct answer They slope down
from left to right
What is the positive relationship between price and quantity known as? - correct answer The law of
supply
What does the law of supply assume? - correct answer That all variables affecting supply, other than
price, remain constant
What does a rise in the price of a good or service increase? - correct answer The quantity supplied of
that good or service
What does a supply curve depict? - correct 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? - correct 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? - correct
answer Shift production
What will suppliers do to adjust for price-related changes on the supply curve? - correct answer Move
production levels
what are changes in supply (shifts in the supply curve) caused by? - correct answer Prices of inputs,
technology,expectations, number of sellers, and government policies and regulations
What fundamental similarity do nearly all supply curves share? - correct answer They slope up from
left to right
