Principles of Economics D089 Pre-Assessment Exam Latest 2025-2026 All 70 Correctly Answered Questions/ Wgu D089 Pre-Assessment 2025 Review D089 Pre-assessment 2025
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PRE-ASSESSMENT: PRINCIPLES OF ECONOMICS (INO1)
(PINO)
Attempt #6
Status: Passed
- A local government is making public policy decisions about spending funds. The residents have
differing opinions on whether the funds should be used for road repair, school expansion, health care increases, or construction of a senior center. The local government must decide the priority.
Which economic question is this decision an example of?
YOUR
ANSWER
CORRECT
ANSWER
What to produce
Why to produce it
How to produce it
When to produce it
- A newspaper is trying to help citizens understand economic principles.
Which misconception should the article address?
YOUR
ANSWER
CORRECT
ANSWER
Consistent rising prices often results in inflation of goods and services.
Printing too much money causes the price of goods to increase.
Increasing the money supply raises the standard of living for consumers in the long run.
Inflation decreases the value of money and makes goods more expensive.
- Which scenario covers a topic included in microeconomics?
YOUR
ANSWER
CORRECT
ANSWER
As a result of a hard freeze, the price of cherries increases.
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YOUR
ANSWER
CORRECT
ANSWER
markets
An economist compares the gross domestic product between the United States and China.The government changes the tax policy to boost economic growth in the United States.The Federal Reserve responds to an increase in inflation by changing the interest rate.
- Which shows the flow of payments between households and firms?
YOUR
ANSWER
CORRECT
ANSWER
Externalities in production
Value-added production
The circular flow model
The production possibilities model
- What accurately characterizes capital?
YOUR
ANSWER
CORRECT
ANSWER
It is in the form of cash.
It is reliant on a natural resource.
It must be in the form of physical objects.
It can be in the form of intellectual discoveries.
- Why is the circular flow model used?
YOUR
ANSWER
CORRECT
ANSWER
To describe how factors of production affect growth and decline
To illustrate how capitalism and socialism differ as an economic form
To describe the interaction of businesses and households in Accessibility Policy Ac
cessibility Setting
s
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