WGU C718 VOCABULARY 2024 QUESTIONS WITH COMPLETE ANSWERS ALREADY PASSED AND GRADED A+

WGU C718 VOCABULARY 2024 QUESTIONS WITH COMPLETE ANSWERS ALREADY PASSED AND GRADED A+ absolute advantage - CORRECT ANSWER when a country (or person) can produce more of a good than another country (In this picture England has absolute advantage in both goods) accounting profit - CORRECT ANSWER profit computed using only explicit costs (Acct Profit = Total Revenue - Explicit Costs) marginal external costs - CORRECT ANSWER additional costs incurred by third parties outside the production process when a unit of output is produced adverse selection - CORRECT ANSWER when the buyer of a product has more information than the seller of the product in a transaction allocative efficiency - CORRECT ANSWER when society is providing the right mix of goods and services to the population asymmetric information - CORRECT ANSWER a situation where the seller or the buyer has more information than the other regarding the quality of the item being sold average fixed cost (afc) - CORRECT ANSWER total fixed cost divided by quantity - always decreases as output increases (because top of the fraction stays the same while bottom of the fraction increases) average product - CORRECT ANSWER the output per unit of input average product of labor - CORRECT ANSWER the number of units of output each unit of labor produces on average (Q/L) WGU C718 VOCABULARY 2024 QUESTIONS WITH COMPLETE ANSWERS ALREADY PASSED AND GRADED A+ average revenue - CORRECT ANSWER total revenue divided by quantity (always equal to price!) average total cost (atc) - CORRECT ANSWER total cost divided by quantity; it is the firm's total cost per unit of output average variable costs (avc) - CORRECT ANSWER total variable cost divided by quantity; it is the firm's total variable cost per unit of output barriers to entry - CORRECT ANSWER something that blocks the entry of new firms in a monopoly or oligopoly market budget constraint - CORRECT ANSWER we can't spend more than our budget budget line - CORRECT ANSWER graphically shows the combination of two goods a consumer can buy with a given budget - the number on each axis shows the maximum amount a consumer can buy if they only buy that good and none of the other good capital - CORRECT ANSWER a factor of production that is made to produce other things (tools, equipment, etc.) cartel - CORRECT ANSWER a group of firms that overtly collude to act like a monopoly (reduce output and drive up prices) ceteris paribus - CORRECT ANSWER holding everything else constant and changing only one thing to see the effect