The WGU D089 Principles of Economics Objective Assessment Final Exam offers an in-depth exploration of fundamental economic concepts, tailored for students of Western Governors University. This document contains updated questions and correct answers for the actual 2025 exam, providing valuable insights into key areas of economics.
Students will find a thorough explanation of the "Law of Supply," illustrated by a supply curve, highlighting how a higher price results in a higher quantity supplied. The document also presents a real-world case study involving the COVID-19 pandemic's impact on the supply of coffee beans, demonstrating a decrease in supply due to workforce disruptions.
Key calculations, such as determining average total costs in production scenarios, are covered, exemplified by Gus' cookie business. Students will learn how to calculate costs and understand the relationship between variable and fixed costs. Additionally, the material delves into long-run and short-run production costs, emphasizing economies of scale where average total costs decrease with increased output.
The exam includes an analysis of different market structures like perfect competition, monopolistic competition, oligopoly, and monopoly, supported by graphical representations to understand trade-offs and efficiency points. Concepts like the Production Possibility Frontier (PPF) are explored, illustrating shifts due to changes in labor productivity.
Students will also gain insight into market concentration through concentration ratios, including the Herfindahl-Hirschman Index (HHI) and the 4-firm concentration ratio, with practical calculations using firm market shares. The functions of money as a medium of exchange and the distinctions between M1 and M2 money measures are thoroughly explained, enhancing comprehension of monetary policy and economic systems.
