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WGU D089 PRINCIPLES OF ECONOMICS EXAM LATEST
2024-2025 COMPLETE 350 QUESTIONS AND CORRECT
VERIFIED ANSWERS ALREADY GRADED A+
Q: The company is currently producing on the frontier of its production possibilities. The company has decided to increase the production of light boards.
Which trade-off must be made to accomplish this goal?Production of light bulbs would remain constant.Production of light boards would be inefficient.Production of light boards would be unattainable.Production of light bulbs would decrease. - ANSWER-Production of light bulbs would decrease.Correct! Because labor is limited, the trade-off for increasing the output of light boards means the output of light bulbs decreases.
Q: It was determined that to make another light board, the company has to give up production of four light bulbs.What is the opportunity cost to make a light board?
- light bulbs
- light bulbs
0.25 light bulbs 0.2 light bulbs
Correct! Four (the value you are giving up) divided by one (the value you gain) equals four. - ANSWER-4 light bulbs
Correct! Four (the value you are giving up) divided by one (the value you gain) equals four.
4/1=4 1 / 4
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Q: The production possibilities frontier for Electrical Technologies is curved.
What happens to the opportunity cost as the firm increases the production of one good?
Cannot be calculated Remains constant Increases Decreases - ANSWER-Increases
Correct! Opportunity cost will increase along a curved production possibilities frontier.
Q: Which type of economy is characterized by a government that plans and controls all economic activity?Traditional Market Mixed Command - ANSWER-Command Correct! A command economy is a centralized economic system in which all economic decisions are made by the nation's government.
Q: What is an example of a normative economic statement?
A business investment will lead to higher employee productivity.Marginal tax rates should be lowered on high-income individuals.An increase in the minimum wage will increase inflation.Unemployment is higher in the United States than France. - ANSWER-Marginal tax rates should be lowered on high-income individuals. 2 / 4
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Correct! A marginal tax rate is the amount of money an individual pays in taxes on each additional dollar earned. This statement uses the word "should", which makes it a value judgment or opinion and a normative statement.
Q: Which characteristic is associated with natural resources from a business perspective?
They must be part of the national economy.They must be purchased through debt.They exist as part of administrative costs.They exist without human effort. - ANSWER-They exist without human effort.
Correct! Natural resources are found in nature without any human effort.
Q: How can the available supply of natural resources be increased?
Paying salaries and wages Discovering new ways to extract resources Introducing new competitors Developing new financing tools - ANSWER-Discovering new ways to extract resources
Correct! The discovery of different ways to extract natural resources can make them more available.
Q: A ski resort sells tickets online at $70 per ticket. The resort is not selling many tickets, so it offers a two-for-one opportunity. Which economic principle is being used?People respond to incentives.Governments may be able to better market outcomes. 3 / 4
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4 Opportunity cost is the value of the next best alternative.Everyone faces trade-offs. - ANSWER-People respond to incentives.
Correct! The incentive of a sale or coupon changed the cost from $70 to $35, making the ski trip more affordable and desirable. This incentive is what likely changed buyers' behaviors.
Q: What are the characteristics of the production possibility frontier graph?
Unlimited choices and upward sloping Trade-offs in choices and downward sloping Unlimited choices and downward sloping Trade-offs in choices and upward sloping - ANSWER-Trade-offs in choices and downward sloping
Correct! The graph of the production possibility frontier reflects trade-offs in choices and is downward sloping.A property owner has 500 acres of flat land and has been approached by two different businesses. One business wants to drill for oil, and the other wants to raise cattle. Which Fundamental Question of Economics is the property owner trying to answer? - ANSWER-What to produce—Using the economy's scarce resources to produce one thing requires giving up another. Producing better education, for example, may require decreasing other services, such as healthcare.
Q: A person graduates from college and gets a full-time job. What happens to the demand for this person's goods and services?
No change in demand for either goods or services.Demand increases.It depends whether demand is elastic or inelastic.Demand decreases. - ANSWER-Demand increases.
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